The Turkish lira fell more than 2%, dropping to the record low against the US dollar today as fundamentals, both domestic and overseas, made the currency largely unappealing to investors and Forex traders.
Prospects for additional interest rate hikes from the Federal Reserve pushed the dollar higher against other currencies. The lira was especially weak against the greenback due to the terrorist threat, which was proven yet again by the nightclub attack on January 1. Analysts predict that the central bank will not raise interest rates because of political pressure even as inflation accelerated faster than was expected, and this also hurts the currency.
USD/TRY rallied 2.37% to 3.7302 as of 12:10 GMT today.
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