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Further depreciation of Turkish lira appears inevitable 

The surprise US inflation data last week could be the omen of deepening troubles for the Turkish economy.
A currency exchange office worker counts Turkish Lira banknotes in front of the electronic panel displaying currency exchange rates at an exchange office in Istanbul, on August 6, 2020.
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Turkey’s embattled currency appears on course to tumble further in the coming months, as external headwinds threaten to aggravate the country’s entangled economic woes.

The Turkish lira — in a fresh downward spiral since the abrupt sacking of the central bank governor in March — plunged to more than 8.5 against the dollar, its lowest level in six months, on May 13 after US inflation data turned up the pressure on the currency. Though it has regained some ground since then, the lira’s prospects remain bleak.

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