Turkish lira recorded a record low against the dollar

The Turkish lira, which is prone to sharp fluctuations before normal trading time, stabilized early on Friday after tumbling 4.25 percent to a record low of 19.80 against the dollar on Thursday evening.

By 0439 GMT, the lira had settled at 18.9575 against the dollar, the same closing level on Thursday.

During Thursday night, the lira rose by about 5.3 percent to 18.0030, before changing its direction and retreating.

Economists are currently studying the impact of the strong earthquake that rocked Turkey last month.

Presidential and parliamentary elections scheduled for May 14 also add to the uncertainty. The outcome of those elections will determine whether Turkey will continue or reverse the unconventional fiscal policies of President Recep Tayyip Erdogan.

The lira has largely stabilized since August thanks to the authorities’ heavy intervention in the foreign exchange market.