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Turkish currency drops to record low against dollar

WT24 Desk

Ankara — Turkey’s currency, the lira, has fallen to an all-time record low against the dollar amid fears of economic instability as the country heads toward snap presidential and parliamentary elections next month, according to AP.

The lira dropped to over 4.80 per dollar on Wednesday, down some 5 percent since Tuesday.

The Turkish Central Bank is under pressure to hold an emergency meeting to sharply increase rates before a scheduled monetary policy meeting on June 7, but is seen to be reluctant as President Recep Tayyip Erdogan wants rates low. Higher rates can support a currency and ease inflation, but also hinder economic growth by making borrowing more expensive.

The lira has lost more than 20 percent of its value against the dollar since the start of the year.

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