Turkish lira hits 11-month low as media raid jars nerves

ISTANBUL

REUTERS Photo

The Turkish Lira, one of the worst performers earlier this year due to concern that the FED would end its tapering program that had boosted emerging markets, has seen another tumble after a weekend raid by police on media outlets.

The currency has weakened 0.8 percent to 2.317 to the dollar, which is its weakest since January when it hit an all-time low of 2.39.

“This could prove to be a key market test for Turkey, coming at a particularly difficult time for emerging markets as they try to cope with the sharp adjustment in oil prices, and the prospect of FED tightening, eventually, in 2015,” Timothy Ash, head of emerging market research for Standard Bank, told Reuters.

Emerging markets have already been under pressure due to the expected rate announcement by the FED, which is preparing to increase rates after almost a decade.