The Turkish pound hit a new record low amid worries that another rate cut will come this week.
The pound fell 1.5% to a record low of 10.2 against the dollar, depreciating against other currencies in emerging markets as it faces lower interest rates amid rising inflation, risks to higher US interest rates and rising oil prices.
Turkey’s central bank is expected to cut interest rates to 15% from 16% this week, although inflation remains above 20%.
“There is a risk that further interest rate cuts in Turkey could lead to a full-blown crisis,” said Jason Tuvey, chief economist for emerging markets at Capital Economics.
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