Turkish Lira hits two-month low over record decline in industrial output

ISTANBUL

REUTERS Photo

Turkish industrial output has posted its steepest decline in a year in October, official data has shown, sending the Turkish Lira to a two-month low against the U.S. dollar.

The seasonally and calendar-adjusted industrial manufacturing index plunged by 1.8 percent on a monthly basis in October, exceeding forecasts that had hovered at around 1 percent, according to figures announced by the Turkish Statistical Institute (TÜİK).

The release of the closely-watched figure hit the lira hard, raising the lira/dollar ratio to its highest level in two months at 2.27.

Industrial production data is deemed to be one of the key indicators of the strength of growth in Turkey, giving confidence to investors amid a weak foreign investment environment and lingering domestic challenges.

The previous steepest decline in industrial output was witnessed in October last year, when the index plummeted 3 percent.