Turkish lira hits record low against U.S. dollar, euro

Source: Xinhua| 2017-11-21 19:18:33|Editor: Jiaxin
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ANKARA, Nov. 21 (Xinhua) -- The Turkish lira hit record lows against the U.S. dollar at 3.97 on Tuesday, while also renewed record against euro at 4.67, according to Turkish Central Bank.

After the currency market opening on Tuesday, the Turkish lira was down over one percent to 3.97 to the dollar at 0652 GMT before rallying slightly to 3.96 at 0800 GMT. The euro rose to 4.67, breaking the record of 4.63 set Monday.

According to Turkish Central Bank, the 10-month average exchange rate of this year was 3.61, while last year one dollar traded for 3.02 lira on average and for 2.71 lira in 2015.

The Central Bank has stepped in and announced that banks would not be able to borrow funds overnight in the interbank money market from Wednesday, according to a statement released by the bank.

Turkey's experts owe the sharp value decline to strained relations with the U.S., which cause tension and negative expectation on Lira among investors.

Turkish-Iranian gold trader Reza Zarrab and Mehmet Hakan Atilla, the deputy chief executive of Turkish lender Halkbank arrested by U.S. court in 2016, are accused of defying U.S. sanctions on Iran and will face trial soon.

The Turkish government on Monday calling the case "political" and a plot against Turkey.

The NATO allies' ties have already been strained over Washington's support for a Syrian Kurdish militia that Turkey views as a "terror" group as well as the failure to extradite a US-based Muslim cleric blamed for last year's failed coup.

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