The Turkish lira tumbled to a record low on Tuesday, losing more than 2% of its value against the dollar amid market concerns that the central bank might raise interest rates this week by less than previously expected.
As of 4:15 p.m. Istanbul time, the lira was 26.99 against the dollar, 2.4% less than Monday’s close of 26.3505.
The currency has weakened by more than 30% this year amid high inflation and moves to increase interest rates to highs, making the second-largest devaluation against the dollar after the Argentine peso.
Turkey’s central bank is expected to raise its policy rate by 500 basis points to 20% this week to further curb inflation, according to a poll by Reuters.
