The lira weakened to 20.077 to the dollar, breaking through the previous record low touched on Friday.The lira has slumped more than 7 per cent since the start of the year, and lost more than 90 per cent of its value over the past decade, with the economy in the grip of boom-and-bust cycles and rampant bouts of inflation.
"In our view, Erdogan's biggest challenge is Turkiye's economy," said Roger Mark, analyst with Ninety One. "His victory comes against a backdrop of perilous economic imbalances, with his heterodox economic model proving increasingly unsustainable." Meanwhile, stocks enjoyed gains with the benchmark BIST-100 index up nearly 5 per cent and banking index rising by 4 per cent. The share of foreign asset managers holding Turkish stocks has dwindled in recent years and the market is chiefly driven by local investors."I was expecting a short-lived rally once the uncertainty of regarding the elections ended," said investment strategist Tunc Satiroglu, adding that he expected the bear market to resume in the coming days.
The nation's dollar bonds slipped to their lowest in at least six months last week, while CDS rose to a seven-month high.