(Michael Selby-Green – Business Insider)
The lira fell 7% against the dollar to 5.9655 on Friday morning after hitting an all-time low earlier in the session. It has fallen by over 35% this year. The fall has come as Turkish President Recep Tayyip Erdogan has moved to take greater control of monetary policy.
The recent plunge comes after a Turkish delegation in Washington failed to stop the US from imposing sanctions against two senior ministers. The lack of central-bank action to support the currency is also spooking investors.
The lira “is falling so fast that a parachute is the first thing that comes to mind to prevent the lira smashing into the ground,” Bart Hordijk, a market analyst at Monex Europe, said in an email. Click here to read more.
- Trump Moves to Raise Tariffs on Turkey, Upping Pressure (CBS News)
- Turkey Turmoil Sends Ripples Across World Stock Markets, Euro Falls (Reuters)
- Erdogan Dismisses Lira Fears, Says “We Have Our God” (Reuters)
- Will Turkey’s Economic Woes Reach Europe? (Deutsche Welle)