Arab News Headlines

Turkish lira slips toward record low in post-rate-cut selloff

Istanbul, Turkey’s lira slid towards an all-time low on Friday as traders continued selling the currency after the previous day’s surprise central bank interest rate cut in the face of near 80% inflation.

Analysts and bankers said Thursday’s cut to 13% from 14% was the central bank leaping on booming and potentially record tourist revenue, and also suited President Tayyip Erdogan’s long-term drive for lower borrowing costs.

Worries the cut will just feed more inflation resulted in a decline of 1% in the lira on Thursday to 18.15 against the dollar, Reuters reports.

It stood at 18.0870 at 1553 GMT on Friday, leaving it just above a record low of 18.40 per dollar which it had hit in December during the last major meltdown. That had been a brief “intraday” low, though, and the currency set a record closing low of 18.089 on Thursday.

Source: Bahrain News Agency