Erdogan’s Latest Diplomatic Row Deals a Fresh Blow to Lira
- Investors see fresh hit to weakening lira if crisis worsens
- Local assets more volatile with many foreign investors gone
Currency exchange rate information inside the Grand Bazaar in Istanbul.
Photographer: Moe Zoyari/BloombergThis article is for subscribers only.
Turkey’s latest diplomatic spat gave currency traders another reason to sell the struggling lira, which dropped as much as 1.5% in early Asia trading amid thin liquidity.
Already under pressure following a larger-than-expected rate cut last week, the currency encountered fresh selling after President Recep Tayyip Erdogan said on Saturday that the ambassadors of 10 foreign nations were no longer welcome.