Turkish lira may slide to 6.2 per dollar as political tensions persist
Turkey’s lira may weaken to 6.2 per dollar after the central bank softened its stance on inflation and concerns persisted about relations with the United States and a possible re-run of an election for the mayor of Istanbul, Dünya newspaper reported, citing bankers.
The lira, which extended the lowest levels since October in Thursday trading, could weaken beyond 6 per dollar should it break resistance at 5.98 against the U.S. currency, according to Eda Karadağ of Integral Investment, Dünya said. The current atmosphere is unlikely to calm unless the lira gains to at least 5.76, she said.
The lira fell 0.1 percent to 5.93 per dollar at 11:48 a.m. in Istanbul.
Investors are waiting for more guidance on inflation from the central bank when it announces its quarterly inflation report next week, bankers said. There is also concern that an end to U.S. waivers on the import of Iranian oil may result in some countries continuing to buy the crude, prompting economic sanctions, Dünya said.
Turkey’s election board is also considering a government request to re-run the Istanbul election, held on March 31 and won by opposition candidate Ekrem Imamoğlu, according to initial results. Tensions also surround Turkey’s planned purchase of S-400 air defence missiles from Russia and its possible expulsion from the F-35 fighter jet programme, Dünya said.