LONDON- Turkish lira 'implied' volatility hit its lowest since early August and broke through a key technical level on Wednesday, as falling oil prices added to a general easing of worries around the currency in the last few months.
Three-month implied volatility dropped to as low as 18.90, which also took in under the 200-day moving average on the option which was at 19 on Wednesday.
Money markets, though still hard to read accurately, are also starting to price a modest fall in interest rates going forward, having been pricing in rate rises for most of the last year.
(Reporting by Marc Jones, editing by Karin Strohecker) ((marc.jones@thomsonreuters.com; +44 (0)207 542 9033; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
