Sentiment Turns Lira From Best to Worst Emerging-Market Currency

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Sentiment Turns Lira From Best to Worst Emerging-Market Currency

President Recep Tayyip Erdogan’s statement that Turkish interest rates could be cut in July or August points to another dramatic summer for the lira. Deteriorating sentiment -- responsible for more than half of its 13% decline this year -- has already pushed the lira to a record low and turned what was the best-performing major emerging-market currency until mid-February to the worst, according to Bloomberg Economics. Higher oil prices and rising global inflation provide further headwinds.

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