Turkey: Turkish lira plummets in value, hits new all-time low
September 7, 2015
The Turkish lira’s (TRY) downward slide picked up pace in recent weeks, as the currency declined sharply against the U.S. dollar. On 4 September, the TRY reached a new all-time low against the greenback, ending the day at 3.01 TRY per USD. This was 8.1% weaker than the level observed on the same day of the previous month. On an annual basis, the Turkish lira lost 39.0% against the dollar. Since 4 September, the lira has hovered around its record low value, failing to gain ground in recent days.
The TRY’s weakening came on the back of rising uncertainty in Turkey. Scheduled early elections, rising violence in the country and the region, along with lackluster economic data and expectations of a tightening in U.S. monetary policy have all contributed to the lira’s depreciation.