Turkish lira hits new record low after Erdogan election victory | CNN Business

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Turkey’s lira hit fresh record lows against the US dollar after President Recep Tayyip Erdogan secured victory in Sunday’s presidential election.

The lira weakened to 20.065 to the dollar in early European trade, breaking through the previous record low touched on Friday. The lira has slumped around 7% since the start of the year, and lost more than 90% of its value over the past decade, with the economy in the grip of boom-and-bust cycles and rampant bouts of inflation.

5% and banking index rising more than 1%. The share of foreign asset managers holding Turkish stocks has dwindled in recent years and the market is chiefly driven by local investors. “An Erdogan win offers no comfort for any foreign investor,” said Hasnain Malik, head of equity research at Tellimer. “Only the most optimistic would hope that Erdogan now feels sufficiently secure politically to revert to orthodox economic policy.

 

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