Jun 22, 2023
Turkey Lira Sinks to Weakest on Record After Rates Decision
Bloomberg News
,![A cashier counts Turkish lira banknotes in Istanbul, Turkey, on Thursday, June 8, 2023. Turkey's lira plunged to a record low as state-run lenders temporarily halted dollar sales, in a sign the new economic team is abandoning a costly intervention strategy as part of an expected turn toward more conventional policies. Photographer: Moe Zoyari/Bloomberg, Bloomberg A cashier counts Turkish lira banknotes in Istanbul, Turkey, on Thursday, June 8, 2023. Turkey's lira plunged to a record low as state-run lenders temporarily halted dollar sales, in a sign the new economic team is abandoning a costly intervention strategy as part of an expected turn toward more conventional policies. Photographer: Moe Zoyari/Bloomberg](/polopoly_fs/1.1936476.1687434838!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/a-cashier-counts-turkish-lira-banknotes-in-istanbul-turkey-on-thursday-june-8-2023-turkey-s-lira-plunged-to-a-record-low-as-state-run-lenders-temporarily-halted-dollar-sales-in-a-sign-the-new-economic-team-is-abandoning-a-costly-intervention-strategy-as-part-of-an-expected-turn-toward-more-conventional-policies-photographer-moe-zoyari-bloomberg.jpg)
(Bloomberg) -- Turkey’s lira dropped to the weakest on record after a smaller-than-expected increase in interest rates on Thursday.
The currency slipped 2.6% to 24.20 against the dollar as of 2:35 p.m. in Istanbul. Turkey’s central bank hiked its main one-week repo rate by 650 basis points to 15%, below the median estimate in a Bloomberg survey for an increase to 20%.
READ MORE: Turkey Vows Gradual Rate Rises After Smaller-Than-Forecast Hike
--With assistance from Robert Brand.
©2023 Bloomberg L.P.