Turkey’s lira plumbs new lows as rising US bond yields pile on pressure
A lack of action on interest rates by the Turkish central bank has disappointed investors
Istanbul — Turkey’s lira tumbled further, hitting new record lows against both the dollar and the euro, as increasing US Treasury yields deepened a rout in the currency. The lira led losses in emerging markets on Monday, to extend last week’s slide of about 4%. The higher US yields are intensifying the pressure by reducing the allure of riskier assets. A lack of action by the Turkish central bank, meanwhile, disappointed investors hoping for interest rate increases. The lira was 1.8% lower at 4.5736 to the dollar by 2.33pm in Istanbul, after falling to a record low 4.5751. One-month implied volatility on the dollar-lira pair, an indicator of expected swings, surged to 22%, extending its climb to the highest level since January 2017. The yield on 10-year Turkish government bonds rose 16 basis points to 15.22%, a new record. "We do not want to sound like a broken record, but after the lira plunged to yet another record low it is evident that unless the central bank acts decisively and...
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