South African Rand and Turkish Lira

South African Rand and Turkish Lira are the two currencies that no one wants to own!

Both currencies over the last year have fallen in value by a third – and thew outlook in both currencies is for further falls.

According to UBS AG the Turkish Lira is still 12% overvalued and the South African Rand about 10%.

Interest rate rises are helping to steam the sell of these currencies but it quite clearly not enough as they are seen as to expensive.

Give that the Russia Crimea situation is a “risk off” (selling risky assets) event i would expect the South African Rand and Turkish Lira to be sold off even further and quickly.

Good news for holiday makers though as the holidays to Turkey and South Africa will look even more attractive compared to Euro exchange rate destinations such as Spain and Greece.