The Turkish Lira took a tumble on Monday after anti-government protests escalated over the weekend causing speculation to rise that the Turkish authorities may step in to clam investor nerves and stem the accelerating selloff.
Against the US Dollar the Lira fell to a one and a half year low, losing more than 1% of its value. Some analysts said Turkish assets will remain under pressure and the central bank may act further to defend the lira. The bank’s chief, Erdem Basci, made that clear on Friday, when he said the bank was considering further measures to support the currency.
“I would expect the central bank to weigh in with verbal and direct intervention in support of the Lira, and Turkish markets more generally,” said Tim Ash, head of emerging-market research at Standard Bank in London.
As well as the escalating protests that have seen Turkish police brutally crack down on protestors the Lira’s decline is a broad reflection of the pattern being seen in the emerging market. Investors are taking flight as hedge funds liquidate their bond holdings due to increasing concerns that a US Dollar rally will lead to the Federal Reserve cutting back on its quantitative easing programme.
The escalation in violence was caused by demonstrations on Friday by Turkish police using excessive force against protestors holding a sit-in to prevent the uprooting of trees in Istanbul’s Taksim Square. Police fired tear gas and water cannon, injuring several protestors. In response anti-government demonstrations spread to many other Turkish cities.
Current Turkish Lira (TRY) Exchange Rates
The US Dollar/ Turkish Lira Exchange Rate is currently in the region of: 1.8948
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 2.8942
The Euro/ Turkish Lira Exchange Rate is currently in the region of: 2.4679
The New Zealand Dollar/ Turkish Lira Exchange Rate is currently in the region of: 1.5119
The Australian Dollar/ Turkish Lira Exchange Rate is currently in the region of: 1.8267
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