Turkish Lira Hits Another Record Low over Geopolitical Concerns

  • Date: 28-Oct-2020
  • Source: Al Bawaba
  • Sector:Economy
  • Country:Middle East
  • Who else needs to know?

Turkish Lira Hits Another Record Low over Geopolitical Concerns

 

Strains in ties with the United States, a row with France, a dispute between Turkey and Greece over maritime rights, and the conflict in Nagorno-Karabakh have all unsettled investors.

 

The lira weakened more than 1% to as far as 8.0515 from a close of 7.9650 on Friday. It has lost 26% of its value this year against the US currency. It also hit a record low beyond 9.5 against the euro.

 

"So very predictable after the CBRT fell short with its rate action last week," said Timothy Ash at BlueBay Asset Management.

 

The central bank (CBRT) had been expected to raise its policy rate by 175 basis points to 12% in the face of weakness in the lira triggered by concerns about high inflation and the central bank's badly depleted FX reserves.

 

However, it