US Dollar breaks new record against the Turkish Lira at 2.5270

Published 27.02.2015 00:00
Updated 27.02.2015 21:07

The U.S. Dollar broke new record against the Turkish Lira at 2.5270 on Friday. The country's stock exchange, Borsa Istanbul (BIST), has decreased by 1,700 points, i.e. 2.7 percent, since the opening session in the morning, while the value of gold decreased from $1,210 to $1,204 per ounce.

The downtrend in the markets comes after claims that Economy Minister Ali Babacan and Central Bank of the Republic of Turkey Governor Erdem Başçı are about the resign following President Recep Tayyip Erdoğan's criticism of the Bank's interest rate policy. The government has strongly dismissed these claims.

The expectation of an early interest rate increase by the U.S. Federal Reserve (Fed) also added to sales pressure in the markets.

Following the record increase of the dollar against the TL on Friday, the Turkish Central Bank said that, in some cases, it might increase its interference in the foreign exchange market by pulling the minimum amount of daily dollar sales --announced the previous day-- to as much as 50 percent. After the Central Bank's announcement, the exchange rate fell to 2.51.

Share on Facebook Share on Twitter