Istanbul: The Turkish lira plummeted to a historic low against the US dollar on Friday, with the exchange rate exceeding 34 liras per dollar amid enduringly high inflation.
One dollar hit 34.05 liras in the morning and then stood at 34 liras at noon, marking a 0.3 per cent loss in the Turkish currency’s value.
The Turkish lira has depreciated by approximately 15.2 per cent against the greenback since January, with a 2.8 per cent loss in its value since the beginning of this month, Xinhua news agency reported.
In response to the economic pressure, Turkey’s central bank maintained its policy rate at 50 per cent on Tuesday, marking the fifth consecutive month of unchanged rates in line with market expectations.
Meanwhile, the country’s annual inflation rate cooled to 61.78 per cent in July, compared to 71.6 per cent in June, according to the Turkish Statistical Institute.
Islam Memis, a specialist in gold and money markets, predicted that the dollar could hit 36 liras in future moves.
Tugba Ekin, an economist at Ahlatci Investment Company, told Milliyet Daily that whether the dollar will remain above 34 liras will depend on the central bank’s reserve maneuvers and the upcoming inflation figures, adding a continued rise in the exchange rate is expected by the end of the year.
–IANS
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