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Lira Drops to Record Low as Central Bank Seen Unwilling to Act

  • Central bank under pressure not to raise rates to help economy
  • Investors looking to sell any lira rally: Rabobank’s Matys
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Piccoli: Turkey's Economy at Crossroads in 2017

The Turkish lira slid to a new record low as investors bet political pressures will constrain the central bank from lifting rates aggressively.

The lira has reached unprecedented levels at the start of 2017 after falling more than 17 percent last year. The currency traded 1.4 percent lower at 3.6225 per dollar by 13.25 p.m. in Istanbul, after a low of 3.6401 per dollar, in the biggest drop among 31 major currencies tracked by Bloomberg. That overturned gains yesterday, as the market looks to sell any upturn, said Piotr Matys, emerging-market currency strategist at Rabobank in London.