SULAIMANI (ESTA) — Turkish lira dropped to 13 to the dollar on Tuesday, as strong economic growth data failed to alleviate concerns about a policy of easing monetary policy despite inflation around 20%.
The lira weakened as much as 1.6% to 13.15 versus the dollar at 1300 GMT. It has lost 43% of its value against the U.S. currency this year.
It hit a record low of 13.45 last Tuesday after Turkish President Recep Tayyip Erdogan’s defense of recent interest rate cuts.
Economists’ attention was focused on Erdogan’s remarks in support of low interest rates.
On Monday, the Turkish president said he would never defend interest rate hikes nor compromise on the issue, Turkish media reported, according to Reuters.
Under pressure from Erdogan, the central bank has slashed rates by 400 basis points since September to %15, Reuters said.
Goldman Sachs research said the selloff this month was the lira’s fifth worst ever, according to Reuters.
