Turkish lira at record low as earthquake hits currency

Istanbul After the severe earthquake in the border region between Turkey and Syria, the pressure on the Turkish lira is increasing. The currency fell to a record low on Monday morning. In return, the dollar has risen and, at 18.83 lira, was more expensive than ever. On Friday it was trading at 18.86 to the dollar.

Continued high inflation is also weighing on the currency. The inflation rate in Turkey was 58 percent in January.

“With inflation remaining at staggeringly high levels in Turkey, assuming the central bank cuts rates before the May elections, real interest rates will fall further into negative territory. This factor weighs heavily on the lira,” said Piotr Matys, FX analyst at In Touch Capital Markets.