Turkish Lira Hits Record Lows On Political Turmoil

Turkey’s currency has plunged to its lowest point against the dollar for more than three decades this week.

In the short term, the lira’s fall can be laid at the feet of political turbulence following a corruption probe which has led to three ministers resigning and even rumors Prime Minister Recep Erdogan may be next to leave.

The country has confirmed its position as one of the more worrying of the ‘Fragile Five’ emerging markets causing concerns to investors.Together with the Brazilian real, Indonesian rupiah, Indian rupee and South African rand, the lira suffered a huge sell-off when it first emerged that the U.S. Federal Reserve was planning to gradually wind down its bond-buying program known as quantitative easing. Emerging markets had benefited from increased investment during the QE program.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.