Turkey's lira plumbed a new record low against the US dollar on Wednesday after the central bank failed to assuage investor concerns about its ability to defy political pressure and lift rates.
The lira has lost around 19 per
The Turkish lira hit a record low and stocks tumbled 3 per cent on Thursday after coalition talks between the ruling AK Party and the main opposition ended negatively, setting the stage for a snap election.
"It's not clear when
Investors' worries over Turkey stem from the economy's structural faults, and Prime Minister Tayyip Erdogan's erratic behaviour.
Foreign investors lapped up Turkey's $2.5 billion eurobond issue even as a corruption
Turkey's central bank raised its inflation forecasts for this year and next on Thursday, citing weakness in the lira currency and higher global oil prices while hinting it may tighten monetary policy further.
At a news confere
Turkish headline inflation fell as expected in August but core indicators rose and could trend higher in the coming months as a weakening lira puts upward pressure on prices.
The consumer price index (CPI) fell 0.10 percent month-
Emerging stocks, bonds and currencies took another hammering on Wednesday as mounting expectations of Western action against Syria pushed up oil prices and drove investors to seek shelter in dollar assets.
The United States and it
Turkish Central Bank Governor Erdem Basci said on Tuesday he did not intend to hike interest rates to defend a sliding lira, which hit record lows on concern about the outlook for US stimulus and the conflict in neighbouring Syria.
The Turkish lira hovered just off record lows near two to the dollar on Monday while the 2-year benchmark bond yield inched above 10 per cent in quiet trade, as heightened concern over the conflict in Syria weighed.
The lira was a
Turkey's central bank announced a modest hike in interest rates on Tuesday and signalled it would fight further falls in the lira by tightening liquidity rather than eat into its foreign exchange reserves.
The move - a rise in
The United Arab Emirates central bank has asked local commercial banks in the country to provide details of their financial exposure to Turkey by Tuesday, two bankers said on Monday.
The central bank said in a