Turkish Lira Reaches Fresh Lows The US Presidential Elections

The Turkish lira hit a new record low on Tuesday (November 3rd), ahead of the US presidential elections, the outcome of which may lead to strained relations between the two countries.

The lira also retreated after data revealed that the annual inflation rate is close to 12%, despite the central bank’s moves to tighten monetary policy.

The lira, the worst-performing currency in emerging markets since the beginning of this year, fell 0.5% to 8.4850 against the dollar, compared with 8.4400 at Monday’s close.

The currency has fallen 30% since the beginning of the year due to concerns about possible Western sanctions on Turkey, depletion of reserves, double-digit inflation and monetary independence.

Analysts say relations between Washington and Ankara could see more tension if Democratic candidate Joe Biden wins the US presidential election.