Turkish Lira weakens to record lows against dollar

ISTANBUL

REUTERS photo

The Turkish Lira weakened to record lows of over 3 to the U.S. dollar on Sept. 4, weighed down by political uncertainty and security concerns, after the announcement of the latest U.S. jobs data. 

The August U.S. jobs report showed fewer new jobs created last month than forecast in a Reuters poll, though it also showed the unemployment rate was at its lowest in more than seven years, Reuters reported. 

The jobs report raised prospects of the U.S. Federal Reserve raising interest rates sooner rather than later, analysts said. While that would be positive for the dollar, any rise in the currency also tends to weigh on commodities, including oil.

The lira already began weakening on Sept. 3 after August inflation data came out higher than expected, with annual consumer price inflation rising back above 7 percent upon high food prices. 

“Global economic data have signaled there are a few steps remaining until the Fed hikes rates, making the U.S. dollar stronger in global markets. This has increased the pressure on emerging currencies. Of course, Turkey’s own domestic problems and difficulties have also further increased the pressure on the lira,” economist and columnist Uğur Gürses told Hürriyet.