Turkish Lira Drops Most in Three Weeks as Moody’s Cuts Outlook - Bloomberg

Turkish Lira Drops Most in Three Weeks as Moody’s Cuts Outlook - Bloomberg:



"Turkey’s lira dropped the most in three weeks after Moody’s Investors Service lowered its outlook on the nation’s debt rating to negative from stable.



Moody’s cited “increased pressure on external financing position driven by heightened political uncertainty, lower global liquidity and slowing near-term economic outlook” as reasons for the decision. The rating was affirmed at Baa3, the lowest of 10 investment grades and on a par with India and Ireland.



The prospect of Turkey losing its investment-grade status may cool demand for its bonds and halt a rebound in the lira, which sank to a record low in January, prompting the central bank to more than double interest rates. Foreign capital inflows into Turkish debt totaled $1.3 billion in the week to April 4, the most since Oct. 25, according to central bank data published yesterday."



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