Turkish Lira Down by More Than 1%

The Turkish lira fell by more than 1% on Tuesday, November 17t, against the dollar, after rising by as much as 12% last week thanks to expectations of a more conservative economic policy when President Erdogan pledged a new economic model.

The lira had stabilized at 7.80, after touching 7.7110 at Monday’s close. The pound has plunged about 24% this year, hurt by fears about the depletion of foreign reserves and costly state interference in the exchange market.

The spark of the rally was sparked last week by the departure of the Central Bank Governor and Finance Minister from their posts. The central bank is expected to strongly raise the key interest rate to 15% this week, according to a Reuters poll.