Market Talk: Turkısh Lıra Stronger, Bonds Weaker

The Turkish lira is stronger despite the Central Bank increased foreign exchange deposits required reserve ratio for Turkish banks; as investors expect rate hikes will start in the near future. Following a national holiday Friday, USD/TRY now trades at 1.4760 from 1.4870 Thursday. Meanwhile, the benchmark January 25, 2012 bond trades at 9.15% from 9.11% Thursday. Analysts forecast TRY to trade between 1.48301.4700the benchmark bond to trade between 9.1%9.2%, in the short
term.