Turkey’s lira falls to record low as forex interventions fail
Lira falls more than 3% on Thursday, leading declines in emerging markets
Ankara — Turkey’s lira tumbled to its lowest level against the dollar as interventions by state banks failed to keep a lid on the currency’s depreciation.
At the root of the strains are concerns about the level of Turkey’s reserves and an aggressive monetary easing cycle that has fueled an outflow of foreign capital. With pressure mounting on the currency, authorities have been leaning on state banks to bolster the lira with dollar sales, rather than raising interest rates or curbing the supply of credit...