Turkish lira is falling to a new record, and stocks are rising after Erdogan’s victory

The Turkish lira fell to a new record low against the dollar on Monday, but stocks rose after President Recep Tayyip Erdogan won re-election on Sunday, ushering his increasingly authoritarian rule into a third decade.

The lira fell to 20.065 pounds per dollar in early European trading, surpassing the previous record low it touched on Friday.

The lira has fallen more than seven percent since the beginning of the year, and has lost more than 90 percent of its value over a decade as the economy went through booms and busts, many bouts of high inflation and a currency crisis.

Erdogan won despite years of economic turmoil, which his critics blame on his unorthodox economic policies and which the opposition vowed in their election campaign to repeal.

Meanwhile, stocks made gains, with the benchmark BIST-100 index rising 3.5 percent and the banking index rising more than 1 percent. The share of foreign asset managers in Turkish stocks has diminished in recent years, with local investors mainly driving the market.

Hasnain Malik, head of equity research at Telemer, said: “Erdogan’s victory does not give comfort to any foreign investor.

“Only the most optimistic would hope that Erdoğan now feels secure enough politically to return to traditional economic policy.”

Trading is expected to be thin on Monday, with many markets in Europe as well as the United States closed for holidays.