Value of Turkish Lira again plummets to record lows against euro, dollar

ISTANBUL

The Turkish Lira has once again weakened to record lows against the dollar and the euro as investor concerns about an overheating economy and geopolitical risks mounted.

The lira regressed to 4.07 against the greenback at noon on April 9. The Turkish currency also touched 5 against the euro, which is another record low, around the same time before easing to 4.99. The lira also saw historic lows against the British pound, plunging to 5.74 against it.

The U.S. dollar rose against its rivals on April 9, extending a two-week run, as investors unwound some short dollar bets on worries an escalating trade conflict between the United States and China may trigger buying of dollar assets.

On April 9, the ruble was the worst performing emerging currency against the dollar as it lost 2.5 percent amid rising concerns about the U.S. sanctions, followed by the South Africa rand by 0.9 percent and the lira by 0.7 percent.

The Turkish currency has been under pressure since early March after Moody’s cut Turkey’s rating with a special emphasis on the country’s widening current account gap. Another concern among investors is the country’s high inflation rate, which persistently stands at over 10 percent, and an escalation in geopolitical risks.