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UBS chief investment office stops coverage of U.S. dollar-Turkish lira pair -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A merchant checks Turkish lira notes at Istanbul’s Grand Bazaar on March 29, 2019, Turkey. REUTERS/Murad Sezer

(Reuters) – UBS Group’s wealth management division confirmed Tuesday that it would cease research coverage on the U.S. Dollar-Turkish lira currency pairing in an attempt to simplify its offerings.

Tilman Kolb from the UBS chief investor office team issued a memo on Thursday last week announcing the end of coverage. It also noted that prior exchange rate forecasts should be ignored and that hedging advice cannot be relied on.

UBS is the global wealth manager with $3.2 trillion invested by its Global Wealth Management unit as of third quarter 2021.

The currency has fallen nearly half off the dollar in the past year, with the pressure on it increasing sharply since September when the central banks initiated an easing cycle. This saw the benchmark of the bank’s easing cut by 400 basis points, despite the rapid rise in inflation.

The bank will reduce its policy rate to 14%, despite rising inflation to 21%. Erdogan is pressuring the bank.[EMRG/FRX]

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