Turkey’s lira weakened for a sixth day as investors fretted over opinion polls suggesting next week’s elections may lead to a coalition government.
The currency declined 0.8 percent to 2.6643 per dollar at 6:19 p.m. in Istanbul, trimming the biggest appreciation among emerging market currencies this month to 0.3 percent. The losing streak is the lira’s longest since an eight-day retreat that ended March 6.
At least three polls in the past week have indicated the ruling AK Party, which President Recep Tayyip Erdogan helped found, may win no more than 41 percent of the vote, even though some surveys show the party securing a majority. The pro-Kurdish Peoples’ Democratic Party may cross the 10 percent threshold required to get seats in parliament, which would leave the incumbents with fewer than the 276 seats needed to govern alone.
“The market seems to be worried a coalition government may not take the necessary decisions in a timely manner, parties may begin to conflict with each other and stability may be damaged,” Pinar Uslu, a strategist at ING Bank AS in Istanbul, said by e-mail. Some investors are therefore decreasing long lira positions after the latest polls, she said.