Turkish lira hits record low after Erdogan seeks expulsions

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A money changer holds Turkish lira banknotes at a currency exchange office in Ankara, Turkey October 12, 2021. REUTERS/Cagla Gurdogan

ISTANBUL, Oct 24 (Reuters) – The Turkish lira weakened 1.6% to a record low against the dollar in early Asian trade after President Tayyip Erdogan said he had ordered the expulsion of the ambassadors of the United States and nine other Western countries. read more

The currency had already hit record lows last week after the Turkish central bank (CBRT) cut its policy rate by 200 basis points, despite rising inflation, in a shock move derided as reckless by economists and opposition lawmakers. read more

The lira hit an all-time low of 9.75 by 1840 GMT on Sunday, weakening from Friday’s close of 9.5950. Two bankers attributed the early weakness to Erdogan’s comments on Saturday. It has fallen nearly 24% so far this year.

“I worry … for Turkish financial markets on Monday. The lira will inevitably come under extreme…

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