Your trusted source

Turkey’s lira hit a record low on Tuesday and most other emerging market currencies in Europe, Middle East and Africa fell as a rise in coronavirus infections and little progress in U.S. stimulus talks dampened demand for risk-linked assets, Reuters reported. 

Strains in Turkey’s ties with the United States, a row with France, a dispute with Greece over maritime rights and middling monetary policy support from the central bank have weighed on the lira, making it one of the worst performing EMEA currencies this year.

The lira sank 1% to a new low of more than 8.1 to the dollar, and has shed more than 36% in value this year.

“It would have been difficult for the Central Bank of Turkey to admit more clearly that it is not willing to take any measures to stabilise the inflation outlook and the lira against political pressure,” Esther Reichelt, FX & EM analyst at Commerzbank, wrote in a note.

“Increased geopolitical tensions and the threat of U.S. sanctions are exacerbating the lira-negative sentiment further."