The Turkish lira dropped to new levels against the US dollar and the euro on Tuesday at the end of its fifth worst month ever, after President Recep Tayyip Erdogan approved a deep easing in interest rates despite widespread criticism and l high inflation.
The lira fell by 5% to a new low record of 13.4515 against the dollar, surpassing last week’s low when Erdogan defended the monetary easing that many economists described as reckless.
The lira recovered slightly to 13.35 against the dollar at 1635 GMT. It also hit a low of 15.06 against the euro.
The lira has lost 45% of its value since the beginning of the year and 29% this month alone against the US currency. Erdogan said,It will not give up on cutting interest rates. “ He expected that “inflation will decline before the 2023 elections”.
Yesterday, the Turkish lira fell more than 4% against the dollar in weak and volatile trading, approaching the lows recorded last week.
The Turkish currency hit an all-time low last Tuesday after Erdogan defended the central bank’s move to cut the interest rate to 15%, despite the inflation rate hitting 20%.
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