No reprieve for the lira since the end of July
Further escalation in geopolitical tensions between US and Turkey is continuing to weigh on the lira, and with no signs of letting up traders are more than willing to price additional US sanctions on Turkey into the domestic currency.
Year-to-date, the lira has fallen by almost 30% against the greenback now in what has been one catastrophe after another for Turkey.
This puts even more pressure on the CBRT to raise rates drastically in order to stem the decline, but given such pressure it's hard to imagine that being anything other than a speed bump at this point.
