Turkish lira has lost 40 percent of its value against the U.S. currency this year

By: Middle East Affairs

On Thursday, the Turkish lira weakened as investors took a cautious stance ahead of the central bank’s rate-setting meeting, where it was expected to hike rates sharply to support the ailing currency.

The lira was at 6.3700 against the dollar, easing from Wednesday’s close of 6.3450. It has lost 40 percent of its value against the U.S. currency this year but has rebounded from a record low of 7.24 percent a month ago.

On the other hand, the central bank will announce its rates decision at 2 pm (1100 GMT) and predictions for a hike ranged between 225 to 725 basis points in a Reuters poll, with the bank balancing concerns over lira weakness with worries about an economic slowdown.

It should be noted that the lira droop has been driven by worries about President Tayyip Erdogan’s effect on financial approach and all the more as of late an unpleasant line with the United States.

Moreover, the national bank and the legislature have taken a progression of measures to help the lira and on Thursday Erdogan decided that property deals and rental understandings must be made in lira, putting a conclusion to such arrangements in remote cash.

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