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24 Mar 2016
USD/TRY seen higher in the near-term – Danske Bank
In view of Vladimir Miklashevsky, Economist and Strategist at Danske Bank, expects the Turkish Lira to depreciate further in the near-term.
Key Quotes
“Current geopolitical risks from conflict with the Kurds, speculation about possible ground operations in Syria and further deterioration of relations with Russia could send the USD/TRY higher at anytime”.
“However, we expect the lira to get support in the short and medium term due to improvements in global risk sentiment and rising appetite towards EM assets because of the dovish Fed, ECB and BoJ”.
“We see slight deterioration in the TRY spot in the long run due to rising oil prices and weaker exports which will add to pressure on the current account deficit”.
Key Quotes
“Current geopolitical risks from conflict with the Kurds, speculation about possible ground operations in Syria and further deterioration of relations with Russia could send the USD/TRY higher at anytime”.
“However, we expect the lira to get support in the short and medium term due to improvements in global risk sentiment and rising appetite towards EM assets because of the dovish Fed, ECB and BoJ”.
“We see slight deterioration in the TRY spot in the long run due to rising oil prices and weaker exports which will add to pressure on the current account deficit”.