Turkish Lira again plunges to over 4 against US dollar

ISTANBUL

The Turkish Lira has once again weakened against the U.S. dollar and the euro amid worries over a trade war and a series of geopolitical and economic risks.

The lira touched over 4.01 against the dollar and 4.93 against the euro early on April 4.

The loss in the Turkish currency’s value came after China plans to impose tariffs on more than 100 different American products with a trading value of over $50 billion, swiftly firing back at the U.S. just hours after the Trump administration made similar proposals.

The latest weakening trend also came one day after official data showed the country’s annual inflation rate was still above 10 percent.

According to analysts, Turkey’s high inflation and current account deficit, as well as an escalation in its geopolitical risks, have played a key role in pushing down the lira’s value.

The lira has weakened nearly 5 percent against the dollar since the start of the year and nearly 10 percent against South Africa’s rand.