Turkish lira hits new low ahead of US presidential election

The Turkish lira hit a new record today, Tuesday, ahead of the US presidential elections, the outcome of which could lead to strained relations between Ankara and Washington.

The lira also fell after data showed the annual inflation rate was close to 12%, despite measures taken by the Turkish central bank to tighten monetary policy.

The lira, the worst performing currency in emerging markets since the start of this year, fell 0.5% to 8.4850 pounds against the dollar, from 8.4400 pounds to the dollar at Monday’s close.

The Turkish currency has fallen 30% since the start of the year, amid concerns over possible Western sanctions against Turkey, depletion of reserves and double-digit inflation.

Analysts believe relations between Washington and Ankara could become more strained if Democratic candidate Joe Biden wins the US presidential election.

Source: “Reuters”

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