English
The Turkish lira is down 21% this year, and a strong dollar is clouding its horizons
The Turkish lira weakened against the US dollar to a new record high. The US dollar was enjoying some strength due to the Fed's updated 2020 GDP forecast.
The Turkish lira recorded a record high of 7.55 Turkish liras per US dollar, down 0.6% from Wednesday's close, and weakening by 21%, becoming the worst performing among emerging market currencies.
Most emerging currencies fell today against the dollar, with the US Central Bank predicting that the world's largest economy will contract by 3.7% instead of the -6.5% previously expected.
The Turkish lira weakened during the week, after the credit rating agency, Moody's, downgraded Turkey's rating for the second time on Friday, due to fear of the balance of payments deficit, and the Turkish Central Bank's failure to intervene to raise interest to save the Turkish lira.
With the US dollar weakening somewhat, the Turkish lira rose marginally to 7.54 liras per US dollar.
