Someone bet big that lira's rough ride is start of bad year

For all of last week, the lenders sold at least $4 billion to support the currency, and another $500 million this week through Tuesday, according to traders with knowledge of the matter. Foto: AP

Just as Turkish state banks rushed in to contain a rout in the lira last week, at least one fund was putting in a big wager that the slide was only getting started.

A $500 million call-spread was executed minutes after the lira buckled past the 6-per-dollar-mark Friday, according to data from the Depository Trust & Clearing Corporation. It stands to pay out if the lira depreciates to between 6.5 and 7.3 per dollar by Aug. 7 - potentially pushing past a record low of 7.2362...

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