Goldman Warns World's Best Carry Trade at Threat From Lira Slide
The most successful carry trade in the world looks vulnerable as Turkey's central bank allows the lira to drop, says Goldman Sachs Group Inc.
Turkey's monetary authority is allowing the lira to depreciate against the dollar at a faster pace than usual, possibly to limit hot money inflows and counter exporters' complaints that the currency is overvalued, Goldman economists Clemens Grafe and Basak Edizgil said in a note on Wednesday.
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