Turkish lira touches record low level against dollar

A money changer holds Turkish lira banknotes at a currency exchange office in Ankara, Turkey September 27, 2021. REUTERS/Cagla Gurdogan

By Reuters

Turkey’s lira weakened on Monday to equal its record low level of 8.9750 against the dollar, which it set on Friday, weighed down by strength in the greenback as well lingering concerns over Turkish monetary policy.

Last month the central bank unexpectedly cut its policy rate by 100 basis points to 18%. Analysts viewed this as fresh evidence of political interference by President Tayyip Erdogan, a self-described enemy of interest rates.

Citing sources, Reuters reported on Friday that Erdogan is losing confidence in central bank governor Sahap Kavcioglu, less than seven months after he sacked his predecessor, because the easing came too late for the president.

At 1000 GMT, the lira stood at 8.9650 against the U.S. currency, edging back from the record level. It has weakened 17% against the dollar so far this year.

The dollar was its highest in nearly three years versus the yen on Monday as investors remained confident the U.S. Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls figures.