Turkish lira drops to new low as US Fed suggests lower cut | Business and Economic News
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The lira fell to 4.7 per cent to $ 13.4541 at 20:08 in Istanbul (17:08 GMT).
The Turkish lira fell to a record low as a result of the US Federal Reserve’s hopes of a faster pace of hardening.
The lira fell to 4.7% to $ 13,4541 per dollar at 8:08 p.m.
This raises concerns about President Recep Tayyip Erdogan’s move to lower borrowing costs, a move that has weakened the currency and boosted inflation. While most central banks are talking about tightening policy, Turkey has reduced lending rates by 4 points since September.
The Turkish lira has weakened more than 27% since the central bank began easing its policy, following the biggest depreciation in emerging markets. Consumer prices rose by 19.9% year-on-year in October, almost four times the official target.
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