Economics
Lira Tumbles After Central Bank Defies Rate-Hike Expectations
A currency exchange office in Istanbul.
Photographer: Yasin Akgul/AFP via Getty Images
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The lira sank to a record low after Turkey’s central bank unexpectedly held back from raising its key interest rate.
Traders had been holding out for a fresh increase on Thursday after policy makers hiked rates at their previous meeting. The currency’s slump of more than 2% -- the biggest decline in emerging markets -- underscored their disappointment as the lira weakened toward 8 per dollar.