Turkish Lira Falls to Record as Tax Increases Curb Rate Bets

The lira fell to a record and Turkish shares slumped on bets that price and tax increases will curtail growth and stoke inflation, leaving the central bank less likely to raise interest rates.

Turkey’s currency depreciated as much as 1.9 percent to 2.1886 against the dollar, the weakest since Bloomberg started tracking the currency in 1981, before trading at 2.1733 as of 5:31 p.m. in Istanbul. It tumbled 17 percent last year, the second-biggest drop among emerging markets in Europe, the Middle East and Africa, as a corruption probe led three ministers to quit. The benchmark stock index lost 1.2 percent.