Turkey: Turkish lira falls to all-time low
October 5, 2015
The Turkish lira’s (TRY) downward slide picked up pace in recent weeks and fell to a new record low against the U.S. dollar. On 14 September, the TRY reached a all-time low against the greenback, ending the day at 3.06 TRY per USD. This was 7.9% weaker than the level observed on the same day of the previous month and represented a 31.0% depreciation against year-to-date. Since 14 September, the lira has hovered around its record low value, failing in recent days to regain lost ground.
The TRY’s weakening came on the back of rising uncertainty in Turkey combined with volatility in global markets. Snap elections and rising violence in Turkey, along with concerns over a slowdown in China—which has caused a broad selloff of emerging market currencies—have all contributed to the lira’s depreciation.