Record low: Turkish lira slides again after partial recovery
Turkish lira slid as much as 4 per cent, touching 14.4 to the dollar before a partial recovery from 14.192.
ISTANBUL: Turkey’s lira has slumped again before a partial recovery on Tuesday following a record tumble, triggering the central bank’s intervention as it touched 14.4 to the dollar for the first time.
The Turkish lira slid as much as 4 per cent, touching 14.4 to the dollar before a partial recovery from 14.192.
The central bank had made the fourth intervention in currency markets in December after the lira tumbled past 14 as much as 7 per cent to the dollar in a new record low, according to Reuters.
The Turkish currency lost some 50 per cent of its value so far this year. It was the result of an aggressive monetary easing by the Turkish central bank by slashed interest rates by 400 basis points since September.
It was learnt via a Reuters poll that the central bank is likely to cut rates again on Thursday.
The massive decline was recorded after S&P Global Ratings lowered the outlook on the nation’s sovereign credit rating to negative on Friday, citing risks from the “extreme currency volatility,” Al-Jazeera reported on Monday.
Turkey’s Treasury & Finance Minister Nureddin Nebati told Haberturk newspaper on Sunday that the government remains determined not to raise rates.
The lira has slumped 48% against the dollar this year and is the worst-performing currency in emerging markets.
