Turkey’s downing of a Russian jet is reminding investors of all the reasons they dislike the lira. The incident near the Syrian border last week ended an election-fueled rally and restored the lira’s status as the year’s worst-performing currency outside Latin America. Russia imposed trading curbs on its near-neighbor, unnerving investors already on edge about Turkey’s vulnerability to higher U.S. interest rates and capital outflows. And it looks like further losses are in store. Strategists see Turkey’s currency setting a new record low versus the dollar in 2016, while options traders are more bearish on the lira than any major peer except...
↧