Goldman Sachs raises dollar/TRY forecast: 12-month expectation hits 59 TRY

US investment bank Goldman Sachs has updated its dollar/TRY expectations for the Turkish Lira. Bank analysts increased their exchange rate forecasts for various maturities, assessing that the monthly depreciation of the lira could occur faster than previously anticipated.

According to CNBC-e, in an investor note dated August 21 by Goldman Sachs analysts, including Kamakshya Trivedi, the 12-month dollar/TRY forecast was raised from 54 TRY to 59 TRY.

The bank also revised its short-term expectations. Accordingly, the 3-month dollar/TRY forecast was raised from 48 TRY to 51 TRY, and the 6-month forecast was increased from 50 TRY to 53 TRY.

Analysts stated that conditions such as a lack of a significant decline in energy prices, a sharp rise in gold prices, or the dollar not losing value on a global scale could increase pressure on the lira. The report also drew attention to the uncertainty that could be created by political developments linked to elections.

According to the data in the report, the dollar/TRY finished last week at the 48.0340 level. As of 11:07, the exchange rate rose to 48.0822 TRY. Goldman Sachs' 12-month forecast of 59 TRY indicates an expectation that the lira could lose approximately 22 percent of its value against the dollar compared to current levels.

News Source: 12punto