How much pressure can the lira take? | beyondbrics

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On Thursday, as Daniel Dombey reported on beyondbrics, there was some respite for Turkey as the pressure on the lira eased a bit after Ben Bernanke’s comments.

But come Friday, the currency was in the firing line yet again, falling to around 1.96 to the dollar at one point. Investors are pushing yields on the two year debt up and up. A big test is coming for Erdogan’s opposition to raising rates.

The lira hit an all-time low on Monday of 1.973 to the dollar, despite the efforts of the central bank via foreign currency auctions, pumping billions of lira back in to the system.

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