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4/10/2018, 2:15 PM (Source: TeleTrader)
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Turkish lira falls to record lows as inflation mounts

Turkey's currency reached the weakest levels in history against the dollar and the euro on Tuesday, indicating investors were skeptical at President Recep Tayyip Erdogan's demands for banks to keep interest rates low even though inflation seems to be spinning out of control. Yesterday he went further and announced a $34 billion stimulus package for the economy, which last week received a downgrade further to junk territory by Moody's, by one notch to Ba2.

The Turkish lira sold off, continuing a downward streak, as market participants were questioning the government's unity in economic strategy and pressure on the central bank, while the army's ongoing intervention in Syria and added to concerns about the system's stability. The economy is facing risk of capital outflows.

The Dow Jones Turkey Titans 20 Index showed a drop of 1.99% at 2:12 pm CET, trading at a level just off the four-month low reached earlier in the session. The dollar surged 0.53% to 4.0936 liras, after today it topped 4.1 for the first time. The euro jumped 0.86% to 5.0628, following a rise to as much as 5.0704 Turkish liras.

Baha Breaking News (BBN) / IT