Turkish lira slump continues as foreign tensions simmer
The Turkish lira continued record losses Tuesday against major currencies as analysts questioned Central Bank independence and Ankara saw political spats deepen with foreign allies.
ISTANBUL — Turkey’s currency extended losses for a fourth day as growing political spats with NATO allies added to fallout over an unexpected Central Bank decision to hold interest rates steady last week.
At 6 p.m. Istanbul time Tuesday, the Turkish lira was trading at record lows of about 8.20 per US dollar and 9.70 per euro, continuing the currency’s longest rout since 1999.
Turkish markets have been in retreat since Thursday, when Turkey’s Central Bank policy committee announced a key interest rate would remain unchanged, surprising investors who had expected further monetary tightening policies following a rate hike earlier this month.
The losses continued Tuesday as a political spat deepened between French President Emmanuel Macron and Turkey's Recep Tayyip Erdogan, who called on citizens to boycott French products after the French leader’s remarks about Islam. Erdogan also filed a lawsuit Tuesday against anti-Islam Dutch lawmaker Geert Wilders for a series of tweets deriding the Turkish leader, including one describing him as a terrorist.
