The Lira is Approaching The Bottom of 2021, The Swing Journey is Not Over Yet

The Turkish lira fell on Friday, May 28, to its lowest level ever, influenced by fears of rising inflation worldwide and expectations at the local level that the central bank will cut interest rates soon, along with the emergence of concerns about a possible early elections.

The currency, the worst performer in emerging markets this year, fell as much as 8.6 per dollar, breaking an all-time low of 8.58 in November. It was at 8.59.

The lira has fallen 16% since mid-March after President Recep Tayyip Erdogan abruptly fired the central bank chief and replaced him with another who had previously been famous for his criticism of recent interest rate hikes.