Rising tensions, rate cut drag Turkish lira to record low

Turkey’s lira dropped to a record low on Monday as a stronger U.S. dollar weighed on emerging market currencies, adding to bearish momentum on the lira since the central bank unexpectedly cut interest rates in September.

In addition, the latest statements by President Erdogan concerning the elimination of threats from Syria impacted the national currency.

The Lira has slumped since 100bps surprise rate cut and extended losses past 9.00 per dollar in New York trading hours for as little as 9.0178, a 0.5% drop.