The Turkish Lira Is Getting Shredded

It’s no surprise that one of the ugliest charts of the day would belong to an Emerging Market.

The Turkish lira is getting slammed, falling more than 1% a record low.

Turkey is one of a handful of Emerging Market’s whose massive current account deficits have currency traders running for the exits.

Here’s the WSJ’s Yeliz Candemir on new Bank of Turkey comments:

Turkey’s currency previously hit a record low of TRY2.0733 against the dollar last week after Governor Erdem Basci ruled out rate increases even as he said officials would defend the lira “like lions,” forecasting it would be up to TRY1.92 against the dollar by year end.

The central bank had appeared to back away from this position Wednesday when Deputy Governor Turalay Kenc was quoted as saying: “The exchange rate at year end may be below or above that level,” by several economists who attended a monthly analysts’ meeting. ”

Here’s an intraday chart of the dollar climbing against the lira from Bloomberg:

Turkish liraBloombergUSD/TRY

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