Turkish Lira Drops as Political Turmoil Takes its Toll

Political turmoil in Turkey in addition to the country’s escalating dispute with the Trump administration spilled into global financial markets on Friday, driving the country’s currency to a record low.

The plunge within the Turkish lira raised fears in which Turkey’s problems could affect Asian in addition to European banks in which have invested within the region, in addition to in which contributed to declines in stock markets around the globe. in which was the latest example of how troubles in a country that has a relatively little economy yet big problems could threaten financial stability further afield.

On Friday, a dollar briefly bought more than six lira, a record, though the Turkish currency later recovered some of its losses.

Over all, the currency has lost more than 15 percent of its value against the dollar This kind of week. The yield on Turkish 10-year bonds has also risen sharply, to nearly 20 percent, meaning traders are demanding much higher returns for what they see as an increasingly risky investment.

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Carlotta Gall contributed reporting.