The Turkish Lira is Falling Again After a Record Drop

The Turkish lira pared its decline slightly after falling by 4% on Tuesday, December 14, after a day in which it plunged to record lows on concerns about President Recep Tayyip Erdogan’s new economic policy and the prospects of another interest rate cut this week.

The lira touched 14.4 against the dollar, before regaining some of its losses and recording 14.192 by 06:05 GMT.

The lira plunged 7% to a record low near 15 before changing its course after the central bank intervened for the fourth time in two weeks to support it.

The lira has lost about 50% of its value since the beginning of the year due to the massive monetary easing from the central bank, which has included a 400 basis point cut in interest rates since September, which Erdogan has urged.