Turkish Lira Drops More Than 5% After Russian Invasion of Ukraine

The Turkish lira fell more than 5% on Thursday as investors sought safe havens after Russian forces invaded Ukraine, raising fears of fresh inflation pressures in Turkey and prompting Ankara to call for confidence in the local currency.

The lira fell to 14.62 against the dollar, its lowest level since the end of December, amid an all-out currency crisis. But it recovered some of its losses later and recorded 14.23 by 1332 GMT.

The lira has been stabilized over the past two months due to a plan to protect lira deposits from the risk of currency devaluation and expensive interventions by the central bank in the currency market.