Traders Warming to Turkey Risk Send Lira's Volatility Tumbling
Constantine Courcoulas
April 5, 2016 — 6:26 AM EDT
For option traders, the lira is headed for a period of calm.
Contracts that measure expected swings in the currency over the next month retreated the most across emerging markets in 2016 to the lowest level since December 2014, a sign of growing confidence in Turkey’s economy. The drop is a boost for carry traders, who buy higher yielding assets by borrowing in lower yielding currencies, as it reduces the cost of protecting against price fluctuations and increases the lure of Turkish markets.
More:Traders Warming to Turkey Risk Send Lira's Volatility Tumbling - Bloomberg
