Turkish Lira at New Record Lows After US Slaps Sanctions on Turkey

The Turkish lira slumped to the new all-time low today after the United States slapped sanctions on Turkey, its NATO ally, over detention of US pastor.

Ankara accused evangelical Christian pastor Andrew Brunson of involvement in the failed military coup against President Recep Tayyip Erdogan in 2016. If convicted, he will face 35-year imprisonment. The incident and the resulting sanctions from the USA hurt the already strained relations between the two NATO members.

Currencies of emerging markets were under pressure this year due to the strengthening US dollar and prospects for tighter monetary policy in the United States. And the Turkish lira was the worst-performing among them, especially after Turkey’s central bank failed to support the currency by raising interest rates.

USD/TRY gained from 4.9921 to 5.0662 as of 18:53 GMT today. EUR/TRY advanced from 5.8226 to 5.8790.

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