The currency dropped as much as 0.7% to 8.4843 per dollar Tuesday even as most of its peers advanced. The decline brought its loss this year to almost 30%.
The lira’s nosedive has accelerated since the Turkish central bank last month defied expectations by keeping its key one-week repo rate on hold while continuing to enact stealth measures to raise the cost of borrowing.
The prospect of a Joe Biden victory in the U.S. election is additionally rattling lira traders already concerned over Turkey’s widening current-account deficit, dwindling foreign reserves, geopolitical tensions and rising Covid-19 infections. Biden is seen as likely to take a harder stance against the Turkish government than President Donald Trump over the country’s purchase of a Russian missile-defense system.
©2020 Bloomberg L.P.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.