Adar Press - Agencies
Turkish lira traders returning after the Eid al-Fitr holiday will have to look closely at the best performance of the currency over the past five years, Bloomberg reported.
Experts advised that more political turmoil, expected in the near future, would mean there may be a long waiting period before the Turkish currency improves.
The Turkish lira rebounded Friday after a 10-day temporary improvement, the longest since May 2014, followed by a pause for Turkish speculators over the three-day Eid holiday.
In the absence of the Turkish speculators, emerging markets' concerns returned, with Mexico's rating downgraded by Fitch Ratings and Turkey's political tension rising before the re-election in Istanbul on 23 November. The lira was the biggest loser among the currencies of developing countries on Friday, falling by 1.5% and fell 1.2% to 5.8497 against the dollar.
"While the market environment favorable to the movement appears to be the Turkish lira at first sight, speculators should be cautious in long-term Turkish lira buying in the coming weeks," said Apec Ozkardiskaya, chief market analyst at Capital Group in London.
"The improvement is likely to be short-term, and traders should be cautious about the possibility of bad conditions on the political scene once again," Oscarskaya said.
Translation: Adar Press.