Turkish Lira Falls to New Records Against Dollar and Euro

© Bloomberg. Turkish lira banknotes sit in this arranged photograph at a currency exchange in Istanbul, Turkey, on Friday, March 16, 2018. As Turkish markets tumble, investor attention is turning once more to the central bank for signs it’s willing to backstop the nation’s assets.

(Bloomberg) — Turkey’s lira weakened to new records against the dollar and euro as investor concerns about an overheating economy and unresponsive central bank mounted.

The currency fell past per euro and per dollar as of 1:04 p.m. in Istanbul. It’s down about 9 percent against the euro this year, the worst performance in emerging markets behind Argentina. Investors have called for higher interest rates to moderate an economy they say is overheating, but Turkey’s responded instead with a series of stimulus measures aimed at boosting growth.

“This mismanagement of the currency leads to a loss of confidence in the purchasing power of the lira which is hard to cure,” said Lutz Roehmeyer, who helps oversee about $14 billion at Landesbank Berlin Investment GmbH. “Only massive one-off hikes can heal this situation, which is of course not popular as it slows the economy.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.