Goldman sees lira falling to 6.25 per dollar as Syria op heightens risk

U.S. investment bank Goldman Sachs expects the lira to decline more than 5 percent from today’s levels in the next three months.

The lira will probably trade at 6.25 per dollar by January, Goldman strategists including Zach Pandl said in a report, according to Bloomberg.

The military offensive in Syria, ordered by Turkish President Recep Tayyip Erdoğan last week, has increased the risk of U.S. economic sanctions, hurting the lira, Goldman said. Turkey’s interest rate buffer, net of inflation, remains thin, leaving the lira exposed, it said, the news wire reported on Monday.

Goldman said its prediction was also influenced by the government’s pro-growth policies. It said it was clear that strong economic growth was the government’s priority. Those efforts probably mean monetary easing and an expansion in credit and government spending, it said.

The lira fell 0.6 percent to 5.91 per dollar at 1:13 p.m. local time in Istanbul.