Turkey’s lira edged deeper into record low territory on Tuesday, nearing 7.5 versus the dollar, as investors looked for signals whether the central bank had halted its month-long backdoor policy tightening.
The lira <TRYTOM=D3> declined to 7.4710 at 0749 GMT, a bit weaker than Monday’s close. The currency has fallen five of the last six sessions and is down 20% this year, among the world’s worst performers.
The central bank has taken backdoor steps to tighten credit since a selloff hit the lira beginning at the end of July. But after a rise, the average cost of funding <CBTWACF=> has hovered near 10.15% in recent days. The bank’s policy rate is 8.25%.