Turkish lira extends losses, down over 30% in 3 days

Markets 8/12/2018, 11:59 PM
Turkish lira extends losses, down over 30% in 3 days

Turkish currency continued falling to record lows on Sunday compared to the American dollar and the euro, after the United States President Donald Trump announced that import tariffs on Turkish steel and aluminum will be doubled to 50% and 20%, respectively. Relations between two NATO allies have deteriorated recently over the detention of an American pastor in Turkey, and Ankara's purchase of an air defense system from Russia.

The dollar surged 5.60% at 11:56 pm CET to go for 6.7788 liras, marking an ascent of 33.50% since Trump announced the tariff hike on Friday. Meanwhile, the euro climbed 5.58% at 11:54 pm CET, buying 7.7282 liras, after the Turkish currency lost 30.59% of its value in the last three days.

Earlier on Sunday, Turkish Finance Minister Berat Albayrak announced that the government has prepared an "action plan" for easing concerns on the market. In an interview for local media, he also pointed out the government had no plans to seize foreign currency deposits or convert them to the domestic currency.

Breaking the News / NI

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EUR/TRY+0.83%

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USD/TRY+0.47%

6.1100
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