ANKARA: The Turkish lira weakened to a record low above 2.57 against the US dollar, hit by the strength of the dollar and with concerns about government pressure on the central bank continuing to weigh on sentiment.
On Wednesday afternoon, the lira stood at 2.5710 against the dollar, hitting above Tuesday’s record low of 2.54. Main share index Borsa İstanbul (BIST) fell more than 2 percent on Wednesday. Economy minister Nihat Zeybekci said later on Wednesday that there are no worries over the rising dollar and the lira simultaneously hovering around record lows. The central bank increased its daily foreign exchange auction amount to $60 million on the same day.
The Central Bank of Turkey said on Wednesday that the real effective exchange rate of the lira, which the bank is monitoring to avoid excessive volatility, fell to 113.22 in February from a revised 117.12 in January. The rate measures the weighted average of domestic prices relative to those of Turkey’s trading partners.