Turkish lira drops against US dollar for the 7th session to a new low
Turkey's lira slides for the 7th day to all-time low
Lira slides to all-time low of 7.59 against US dollar on expectations Turkey’s central bank will stand pat but continue its back-door tightening measures at end of its policy meeting on September 24.
Monday 21/09/2020
Turkish lira drops against US dollar for the 7th session to a new low
LONDON – The Turkish lira dropped for the 7th session to a new low as focus turned to a central bank meeting this week.
The lira slid for the seventh straight session to an all-time low of 7.59 against the dollar by 0838 GMT on expectations the central bank would stand pat but continue its back-door tightening measures at the end of its policy meeting on September 24.
Concerns over depleted forex reserves, negative yields due to high inflation, and tensions with the European Union over the east Mediterranean have pushed the lira down over 20%, making it one of the worst performing currencies this year.
"The main risk ... is that the authorities tighten policy too little and too late as they prefer to remain supportive of growth, a policy course which would add to the risks around the lira," said Ehsan Khoman at MUFG Bank.