The Turkish lira hit a record low on Wednesday and local bond yields rose to fresh peaks on political strains and worries about the central bank’s ability to curb inflation. The lira hit 3.98 against the dollar, coming under renewed pressure ahead of the U.S. trial of Turkish gold trader Reza Zarrab, who is accused of violating U.S. sanctions on Iran. The Turkish government have described the case as a “clear plot against Turkey”, which lacks any legal basis. Said Haidar shares views on the Turkish market, stating “Turkey had fallen substantially behind the curve in terms of interest rate normalisation. We’re not very positive on Turkey in the near term — eventually hopefully enough pressure is brought to bear that they push rates up and the currency then does better. It’s an ugly looking situation made worse by political issues”.
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