Turkish Lira Hits All-Time Low Due to Political Turmoil
2020-10-08 | Since 2 Month
Turkey’s lira hit a record low for the second straight session on Thursday weighed by concerns over possible US sanctions and the Caucasus conflict.
The lira sank 0.7% to an all-time low of 7.9389 to the dollar, Reuters reported.
This came as other emerging market stocks and currencies rose on the prospect of individual COVID-19 relief measures in the US.
While the Turkish central bank is expected to step in and support the lira, doubts persist over the scale of intervention the bank will be able to provide, given that it has already been burning through its reserves to prop up the currency.
The currency has been among the worst performers this year on worries about Turkey’s depleted forex reserves and sharply negative real interest rates, and was now being hit by the growing geopolitical concerns.