The Turkish Lira Hits New Lows

The Turkish lira fell by about 0.8 percent on Tuesday to a new record low of 10.14 against the dollar, weighed by expectations of another interest rate cut from the central bank this week.

The lira has fallen 27 percent against the dollar this year, mainly due to concerns about political interference in monetary policy amid President Recep Tayyip Erdogan’s repeated calls for interest rate cuts and rapid changes in central bank leadership.

The bank is expected to cut the interest rate to 15 percent from 16 percent this week, a Reuters poll found, although inflation remains near 20 percent.