ISTANBUL – The Turkish lira weakened more than 1% against the dollar on Thursday on persisting concerns about the prospect of further interest rate cuts and expectations that this will further stoke inflation, which is already at 2-1/2 year highs.
A dollar rebound fuelled losses. The lira weakened as far as 9.765 and stood at 9.73 to the U.S. currency at 1156 GMT. Annual inflation rose to near 20% in October after the central bank aggressively cut its policy rate.
The lira also weakened on Wednesday but pared its losses after officials responded to rumours about President Tayyip Erdogan’s health by posting images of him carrying out his work.
Reuters
