Lira Hedging Costs Nosedive as Traders Embrace Lower Volatility

Photographer: Kerem Uzel/Bloomberg
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It hasn’t been this cheap to hedge against losses in the Turkish lira in almost two years.

The premium traders pay for options to sell the local currency against the dollar over those to buy it over a one-month period fell to 1.5 percentage points on Thursday, matching a low last seen in April 2018.