Turkish lira recorded its lowest level in two months after the elections

The Turkish lira fell to its lowest level in two months as financial markets began trading in the aftermath of the presidential and parliamentary elections that took place on Sunday, amid expectations that the presidential race is heading to a run-off.

The lira fell to 19.70 against the dollar, before it compensated for some of its losses and reached 19.65, heading towards recording its worst session since early November.

This was not far from the level of 19.80, which the currency recorded after the bloody earthquake that hit the country in early March.

The parties of President Recep Tayyip Erdogan and his opposition rival, Kamal Kılıçdaroğlu, announced their leadership in the presidential race, but sources in both camps said that they may not exceed the 50 percent barrier needed to declare victory directly.

The presidential election will not only decide who will lead Turkey – a NATO member with a population of 85 million – and the shape of its foreign policy, but also its style of governance and the direction in which the economy will go amid a raging price crisis.

The lira has fallen five percent since the beginning of the year, and it has lost about 95 percent of its value over the past decade and a half.

It is likely to resort to a run-off on May 28.