An expert who was able to predict the appreciation of the Turkish lira last year, which rose 15%, now believes it is time to rise again.
Thomas Clark, who works for William Blair International, a $ 56 billion asset management company in London, believes we can expect a new peak in the pound against the backdrop of the central bank’s willingness to tighten monetary policy.
“We think the pound is seriously undervalued,” the expert said in an email to Bloomberg.
“Her performance has been undermined by fears that, under political influence, the Central Bank of Turkey will not tighten monetary policy adequately to curb inflation,” he added.
Rising geopolitical risks, double-digit inflation and negative real interest rates have put pressure on the pound, pushing it to a new record low last week.
Since the beginning of the year, the currency has depreciated by 25%, which is the weakest performance for emerging markets since the Brazilian real.