The Turkish lira gained today, touching the highest level in a month, after JPMorgan Chase & Co. said it prefers the lira to the rand as the Turkish central bank has stronger defense.
JPMorgan said:
The central bankâs backstop for the lira is stronger than ever while official policy support for the rand remains weak. The trade works best in a defensive risk environment, the main risk to the trade is therefore a significant pickup in risk sentiment.
The Central Bank of the Republic of Turkey used as much as $15 billion since August to support the nation’s currency. The central bank sold another $100 million today, but it refrained from providing funds to banks.
USD/TRY fell from 1.8805 to 1.8706 as of 14:11 GMT, touching 1.8675 earlier today.
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