Economics
Turkey Crisis Deepens as Sanctions Threat Sends Lira to Low
- Turkey changes reserve rules to boost banks’ dollar liquidity
- Lira rises Tuesday after report Turkey officials to visit U.S.
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Turkey’s lira sank to a record low and bonds tumbled as heightened concern over a diplomatic spat with the U.S. overshadowed the central bank’s attempt to support the currency.
The lira slumped as much as 6.3 percent Monday before rising 1.1 percent Tuesday after a report Turkish officials will head to the U.S. The rate on 10-year bonds hovered just below 20 percent after President Recep Tayyip Erdogan said on Saturday that Turkey will respond in kind to U.S. sanctions over a detained American pastor. The iShares MSCI Turkey exchange-traded fund plunged 7.5 percent -- the lowest level since 2009.