Turkish Lira falling before elections
REUTERS PhotoThe Turkish currency fell for the eighth consecutive day on June 1, down around 0.8 percent against the U.S. dollar to 2.68.
The Turkish Lira has fallen around 5 percent against the dollar since mid-May, amid rising uncertainties ahead of the general election on 7 June and a drop in the value of the euro amid the ongoing Greek crisis.
The lira hit a record low of 2.7435 against the dollar back in April but made its biggest weekly gain in over three years in May. The currency’s loss since the beginning of the year has been around 14 percent.
The lira rebound last week was partly driven by predictions that while the ruling Justice and Development Party (AKP) could form a government on its own after a June vote, it may not get enough seats to enable it to change the constitution, according to analysts.
The markets also have also been closely following whether Turkey’s economic management team is set to change after the elections, as well as the inflation outlook, which has been increasing in recent months.