Turkey’s Lira Weakens to Record as Erdogan Fights Graft Probe - Bloomberg

Turkey’s Lira Weakens to Record as Erdogan Fights Graft Probe - Bloomberg:

"Turkey’s lira tumbled to a record against the dollar and euro while bonds fell as Prime Minister Recep Tayyip Erdogan’s government purged police leadership in a fight back against a probe into official corruption.

The lira dropped as much as 1.2 percent to 2.0982 per dollar, the weakest since at least 1981, before trading 0.9 percent lower at 5:55 p.m. in Istanbul. The currency also fell as much as 1.2 percent to a record low of 2.8681 per euro. Yields on two-year benchmark notes increased 25 basis points to 9.61 percent, the highest since Sept. 3.

“Political risk has increased considerably,” Melih Onder, chairman of Logos Portfoy Yonetimi AS, which manages about 180 million liras ($86 million), said by phone from Istanbul. “It took a few days for foreign investors to digest what has happened. This selloff could continue for as long as 10 days.”"

'via Blog this'