The Turkish lira falls to a new record low against the dollar

The Turkish lira falls to a new record low against the dollar
The Turkish lira falls to a new record low against the dollar

Sky News Arabia

The Turkish lira plunged to a new record low against the US dollar on Monday, with analysts seeing little chance of recovery given what they called expectations of an “irrational” interest rate cut later this week.

The Turkish currency, the worst performer among emerging market currencies this year, touched an all-time low of 9.35 against the dollar before closing at 9.34 against the dollar.

The lira lost 20% of its value this year, and half of this decline came since the beginning of last month, when the Turkish Central Bank began giving easing signals, despite inflation rising to about 20%.

Turkish President Recep Tayyip Erdogan has repeatedly called on the central bank to ease monetary policy, and analysts believe that his intervention has eroded the credibility of monetary policy in the past few years.

A surprise rate cut of 100 basis points last month sent the lira sharply lower, according to Reuters.

Economists polled by Reuters were divided on the size of the expected rate cut at Thursday’s Monetary Policy Committee meeting, with some predicting a 50 basis point cut while others expected a 100 basis point cut.

Source

Turkish lira falls record dollar

 
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