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Lira Falls as Minister Call for Rate Cuts Adds to Risk Aversion

  • Currency declines to lowest level in more than a week
  • Economy minister says interest rates should fall `radically'
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The lira fell to the lowest level in more than a week after Turkey’s Economy Minister became the latest official to call for interest-rate cuts, stoking concern that politicians are interfering in monetary policy.

The currency lost 0.6 percent to 2.8492 per dollar at 6:14 p.m. in Istanbul, also as concern that global growth is faltering prompted weakness in emerging-market assets. Earlier, Economy Minister Mustafa Elitas said the central bank should lower borrowing costs “radically," joining a long line of senior politicians, including President Recep Tayyip Erdogan, to call for easing to stimulate the economy.