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TRY Offered as Carry Buffers Erode and Erdogan Risks Increase

TURKEY
  • USD/TRY diverging the high-yield somewhat - now approaching 7.50
  • Erosion of carry buffers post-CPI likely weighing on TRY, and no traditional hawkish comment from Agbal to soothe nerves
  • Big risk remains Erdogan being emboldened to voice his controversial view that high rates cause inflation and add pressure to cut rates prematurely
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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