Turkish Lira Tops New Lows

The Turkish lira fell to a new record low of 38.7 per US dollar as investors continued to weigh the country’s political and economic outlook.

Although the Kurdistan Workers’ Party’s decision to end its armed struggle was a major step toward resolving a long-standing security challenge, its positive impact was overshadowed by external pressures.

A stronger USD—bolstered by news of a 90-day tariff reduction agreement between the US and China—further weighed on the lira.

At the same time, Turkey’s central bank has been actively intervening in the foreign exchange market to stabilize the currency, which took a major hit in March following the arrest of Istanbul Mayor Ekrem Imamoglu, President Erdogan’s main political rival.

The incident triggered the largest protests in over a decade and fueled fears of deepening political instability.

In response, the central bank raised interest rates in both March and April and implemented a series of additional measures to support the lira.