Economics
Lira Gets No Relief From Erdogan as Hike Fails to Stem Drop
- Currency reverses gains and drops as much as 5 percent
- President Erdogan gives election campaign speech in Ankara
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The relief brought by Turkey’s decision to boost interest rates at Wednesday’s emergency meeting didn’t last long, as the lira resumed its nosedive against the dollar. And President Recep Tayyip Erdogan has since offered no respite.
The lira declined as much as 5 percent on Thursday, the most in emerging markets, amid concern the unscheduled rate increase will provide only temporary support. The currency led gains among major currencies Wednesday after the central bank raised its late liquidity window rate by 300 basis points.