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Turkish lira hits new low ahead of cenbank meeting this week -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A merchant checks Turkish lira notes at Istanbul’s Grand Bazaar on March 29, 2019, Turkey. REUTERS/Murad Sezer/File Photo

ISTANBUL (Reuters – The Turkish lira dropped to a record level below 14.0 USD on Monday, owing to fears over President Tayyip Turkey’s low-interest rate policy. Also, there are prospects that the central banks will ease further at a Thursday policy setting meeting.

After Friday’s 14.1 exchange rate against U.S. dollars, the lira fell 1.5% by 0658 GMT. It was at an intraday low of 0.85. This year, it has lost 47%.

Despite inflation exceeding 21%, Turkey’s central banks is likely to reduce its policy rate 100 basis points to 14% next week.

Three times the central bank intervened at the foreign exchange markets in the last week, selling dollars as well as keeping the lira lower than the 14.0 mark.

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