Turkey’s lira plunged below 14 to the dollar for the first time, demanding the central bank’s fourth intervention in the global currency markets in December.
- The plunge came after S&P Global Ratings reduced the forecast on the country’s sovereign credit rating to negative, signaling risks from the “extreme currency volatility.”
- The lira depreciated nearly as 6% earlier before reducing losses after the monetary authority sold foreign exchange in the global currency market.
- The central bank, which is projected to lower interest rates this week, indicated unhealthy price formations in the currency market.
- The lira traded 2.6% lower at 14.2530 by 1:16 p.m. in Instabul. The yield on the nation’s 10-year government bonds rose nearly 31 basis points to a three-year high before dropping to trade at 28 basis points, 21.69% higher.
The lira has sunk 48% against the US dollar this year and is the worst-performing currency in the global emerging markets.
TRY USD down -2.00%