Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Lira Falls to Record Low as Erdogan Signals New Syria Offensive

ForexOct 12, 2021 05:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Lira Falls to Record Low as Erdogan Signals New Syria Offensive

(Bloomberg) -- The Turkish lira extended its slide to a record low after President Recep Tayyip Erdogan hinted at a possible military offensive into neighboring Syria.

The currency depreciated as much as 0.4% to 9.0398 per U.S. dollar after Erdogan said late Monday that Turkey is determined to eliminate threats emanating from Syria “either through forces that are active there, or by our own means.”

While Ankara has been embroiled in the conflict for years, the move threatens to stoke tensions with the U.S., which is backing Kurdish militants in the region that Turkey opposes. And it comes at a fraught time for the NATO allies, with Washington warning it could impose sanctions on the country again.

“Market players seem to perceive these comments as a cross-border operation,” Emre Degirmencioglu, a group manager at the treasury department at Iktisatbank in Nicosia, wrote in a note.

The losses were exacerbated by a bout of dollar strength and fragile global risk appetite. An unexpected rate cut last month reduced the allure of Turkish assets and fueled concern that inflation -- already running at the fastest pace in two years -- would continue to accelerate.

The lira has weakened more than 6% against the dollar since the Turkish central bank governor last month shifted focus to a narrower set of core prices, stirring speculation he was giving policy makers more room to ease rates despite the risks.

“We could be witnessing the beginning of yet another vicious cycle of monetary policy easing,” said Piotr Matys, a senior currency analyst at InTouch Capital in London. A precipitous fall in the value of the lira could force the central bank to “abruptly make a U-turn and raise rates to stabilize the currency,” he said.

Turkey Rate Shock Imperils Reserves, Hurts Credibility: Analysts

For its part, the central bank says the latest jump in inflation is transitory. Governor Sahap Kavcioglu told investors and analyst in a teleconference last week that Turkey’s monetary policy stance remains sufficiently tight.

©2021 Bloomberg L.P.

 

Lira Falls to Record Low as Erdogan Signals New Syria Offensive
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
MK MK
MK MK Oct 13, 2021 6:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No one cares what helpless yankees think. They got kicked everywhere
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email