Turkish Lira hits all-time low | News from Turkey

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Geopolitical worries see the lira depreciating to another all-time high against the US dollar, extending the year’s loss to 24%.

The Turkish lira has depreciated to an all-time high against the US dollar, dissociating itself from other emerging currencies amid growing geopolitical risks in the region.The lira fell 0.9% to 7.8692 per dollar, extending losses this year to over 24%, the second largest decline in emerging markets after the Brazilian real.

Turkey plans to test Russian-made S-400 missiles in defiance of US complaints, while at the same time opposing Russia in recent clashes in the Caucasus. It is also pushing its own agenda in the Eastern Mediterranean, putting it at odds with members of the European Union, Greece and Cyprus.

“In addition to the ongoing clashes between Armenia and Azerbaijan, the risk of the United States imposing sanctions on Turkey for the purchase of the S-400s from Russia has increased,” said Piotr Matys, strategist based in London at Rabobank. “Testing the S-400s ahead of a crucial US presidential election without knowing whether President Trump, who has an affinity for President Erdogan, will be re-elected, is a major source of concern for already nervous investors.

Meanwhile, Turkey paid a premium by selling $ 2.5 billion in debt to international investors on Tuesday, the first foray into global markets since February. The bonds priced at 6.4%, compared to 4.25% for notes with a similar maturity issued in February.



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