Turkish lira is falling to a new record low

In early trading on Monday, the Turkish lira reached a new record low against the dollar, recording 18.85, as the Turkish currency is under pressure due to the strength of the dollar and geopolitical risks.

Emerging market currencies came under significant pressure after the dollar rose sharply on Friday in the wake of a strong jobs report in the United States, suggesting the Federal Reserve may stay on the tightening path for a while longer.

Adding to the pressure were signs that the United States would push for tougher sanctions enforcement policies after Washington warned Ankara against exporting chemicals, chips and other products to Russia that Moscow could use in its war in Ukraine.

Markets are also anticipating the consequences of the 7.8-magnitude earthquake that struck central Turkey and northwestern Syria on Monday and has so far killed about 300 people and injured hundreds with buildings collapsing across the region.

By 0700 GMT, the lira had recovered its losses and returned to trading at a stable level.

The last time the Turkish lira reached a record low was on December 26, when it fell to 18.844 against the dollar. The currency has lost about 1 percent of its value since the beginning of the year.