The Turkish lira plummeted as much as 13% against the dollar on Friday, deepening worries about the country’s economic stability.
The currency’s plunge reflects a range of concerns, including tensions with the United States and the unwillingness of Turkish authorities to raise interest rates. Turkey has threatened to retaliate after the Trump administration imposed sanctions on senior Turkish government officials for their role in the detention of an American pastor.
Turkey on Wednesday sent a government delegation to Washington in an attempt to defuse the situation, but it wasn’t clear whether any progress was made.
Adding to the negative mood Friday, the Financial Times reported that the European Central Bank is concerned about eurozone banks’ exposure to Turkey because of the tanking lira. The ECB declined to comment.
Source: CNN Money