Turkish Lira Slumps Past 10 Per Dollar as Rate-Cut Jitters Mount
- Currency is worst performer in emerging markets this year
- Central bank is seen cutting rates further next week
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The Turkish lira fell to a record low amid concern the central bank will continue cutting interest rates even as the prospect of tighter monetary policy in the U.S. erodes the currency’s appeal.
The lira dropped as much as 1.2% to 10.0218 per U.S. dollar, extending the biggest depreciation in emerging markets this year. Policy makers will cut the one-week repo rate by 100 basis points next week, according to the median estimate in a Bloomberg survey of economists. That’s on top of a 200-basis-point reduction in October, double what markets expected, exposing the currency to tighter global financial conditions and risking further fanning inflation already close to 20%, four times the official target.