Turkish lira set for worst month since 2018 economic crisis

LONDON - Turkey's lira led losses across emerging markets in Europe, Middle East and Africa on Friday, and was set for its worst month since the 2018 crisis, weighed by rising coronavirus cases and uncertainty over the US presidential election.

The lira dropped 0.6%. The currency has been plumbing record lows every day this week as the central bank unexpectedly held lending rates, despite elevated inflation levels in the country.

Geopolitical tensions in the Caucasus and the eastern Mediterranean also exacerbated the lira's decline, putting it on course to lose 7.9% to the dollar in October, its worst monthly decline since the height of the 2018 economic crisis.

Meanwhile, data showed Turkey's trade deficit almost tripled in September, while foreign visitor arrivals more than halved in the month, indicating further pain for the lira.