Turkish lira weakens to record low of 8.0 against dollar

Credit: REUTERS/MURAD SEZER

The Turkish lira weakened to an all-time low of 8.0 against the U.S. dollar on Monday, after the central bank kept the policy rate on hold last week against expectations of a hefty rate hike.

ANKARA, Oct 26 (Reuters) - The Turkish lira weakened to an all-time low of 8.0 against the U.S. dollar on Monday, after the central bank kept the policy rate on hold last week against expectations of a hefty rate hike.

The lira TRYTOM=D3 touched 8.01 in early trade and stood at 8.0080 at 0636 GMT, weakening from a close of 7.9650 on Friday. It has lost 25% of its value this year against the U.S. currency.

The central bank had been expected to raise its policy rate by 175 basis points to 12% last Thursday in the face of weakness in the lira triggered by concerns about high inflation and the central bank's badly depleted FX reserves.

(Reporting by Daren Butler Editing by Ece Toksabay)

((ece.toksabay@tr.com; +90 312 2927022; Reuters Messaging: ece.toksabay.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More