Turkish Lira Likely to Keep Falling Even as Current Account Improves -- Market Talk

Dow Jones
2025/10/14

1058 GMT - The Turkish lira should continue depreciating even though the country's current account has improved, Commerzbank analyst Tatha Ghose says in a note. The current account registered its highest monthly surplus on record in August at $5.46 billion. However, portfolio investments swung to an outflow of $662 million in August. Further outflows are possible in September after chaotic court rulings against opponents of Turkish President Recep Tayyip Erdogan, Ghose says. The current account has improved on tight monetary policy but the capital account reacts to political noise, he says. "Frequent volatility means that interim positive spells fail to stabilize the currency." The dollar rises 0.1% to 41.7991 lira, having reached a record high of 41.8430 Friday, according to LSEG. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

October 14, 2025 06:58 ET (10:58 GMT)

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