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5/8/2018, 10:43 AM (Source: TeleTrader)
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Turkish lira falls to all-time low versus dollar

The stock exchange in Istanbul continued the fall on Tuesday from a peak reached in late January, while the country's currency slumped against counterparts from the United States and Eurozone. The dollar's recent surge relative to most peers, fueled by interest rate increases and expectations of higher economic growth, exacerbated the Turkish lira's fall, and the exchange rate hit 4.2952, the highest point in history.

The domestic markets suffer from the impact of high inflation and the government is pressuring the central bank to keep borrowing costs low. President Recep Tayyip Erdogan called early elections, to be held on June 24. Turkey has been under a state of emergency since a failed military coup in July 2016. The strongman leader promised to bring down interest rates and to rein in inflation and current account deficit at the same time. Erdogan has said the switch to the presidential government system would help close the "gap between the income groups."

The Dow Jones Turkey Titans 20 index was down 0.31% at 996.36 points at 20:41 am CET, following a drop to 991 points, the lowest level since May 22 of last year. The euro rallied 0.79% to 5.1018 Turkish liras, while the dollar soared 1.4% to 4.2895.

Baha Breaking News (BBN) / IT