Investors who sell the lira for dollars may benefit from near-term volatility in the currency, sparked by President Recep Tayyip Erdoğan’s interference in monetary policy, said Robert Petrucci, an investment consultant at the Ein Harod Family Office and a partner in a private finance firm. The lira has technical support at around 8.6 and 8.56 per dollar and could weaken further should it not challenge those levels significantly, Petrucci said in an article published on Monday by currency news and analysis website Daily Forex. The lira was trading down 0.6 percent at 8.62 per dollar on Tuesday morning. Traders should consider selling the lira for dollars when the lira comes within sight of current support levels. More cautious investors may activate a limited order at 8.48 or 8.5 per dollar, but this tactic may require some patience, Petrucci said. Last Tuesday, the lira fell to record lows beyond 8.8 per dollar after Erdoğan said it was imperative that the central bank cut interest rates in July or August to help reduce financing costs for companies that were driving up inflation. Erdoğan, who has sacked three central bank governors in less than three years, says high interest rates are inflationary, a view that jars with traditional economic theory. Inflation in Turkey slowed to 16.6 percent in May from 17.1 percent in April. The central bank hiked interest rates to 19 percent from 10.25 percent between November and March and then held them steady to help curb price increases. “Wagering on positions via limit orders that buy the USD/TRY near its current values around the 8.62 vicinity could prove a solid decision while aiming for resistance as take-profit targets, he said. “Speculators should certainly expect more volatility from the USD/TRY in the days to come, and it will not be surprising to see President Erdoğan make his sentiment heard again, and if he does speak, it could spook the Turkish lira more.” Resistance to further losses for the lira exists at 8.707 per dollar, Petrucci said, setting a ‘high target’ for the dollar-lira trade at 8.76 and a ‘low target’ of 8.48. Gibraltar-based Ein Harod provides consultancy services for the management of the wealth of high net-worth families and individuals.