‘Mystery Move’ Triggers Turkish Lira Losses Before Calm Returns
- Traders say position adjustments followed sudden plunge
- Deutsche Securities cites dried-up liquidity for volatility
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A brief and sudden plunge in Turkey’s lira during early trading left traders scratching their heads and rushing to cut losses, before the currency settled on a more predictable path.
The lira weakened as much 1.4% in Asian hours to a record low of 34.4898 per US dollar, according to Bloomberg indicative pricing. The move was trimmed shortly after, with the currency trading little changed at 34.0477 as of 11:24 a.m. in Istanbul. The lira also witnessed a brief and sharp plunge against the Japanese yen.