The Turkish lira hit another record low value against the dollar today
despite the Central Bank's intervention in the foreign exchange market
last week Hurriyet Daily news reported.
The lira tumbled to 2.37 to the dollar and 3.2430 to the euro in morning trading, after touching 2.33 and 3.20 on Jan. 24.
The currency also saw all-time low against a euro/dollar basket at 2,7898.
The Istanbul stock exchange main index, meanwhile, lost by around 1 percent to reach below 63,800 points.
week, Turkey's Central Bank ploughed at least $2 billion into the
foreign exchange market to shore up the currency, which has been hitting
record lows almost daily this year.
The bank has statutory
independence but has been under strong political pressure not to raise
interest rates. The fall of the lira is rooted in an escalating
political crisis and concerns about the economy. But government
officials have played down the impact of the crisis on the economy as
being only "temporary." The Central Bank has so far refrained from
raising interest rates to defend the lira amid government concerns that
any rise in rates could jeopardize the growth target. The government has
been forecasting that growth will pick up from an expected rate of 3.6
percent in 2013 to 4.0 percent for this year, still down from more than
8.0 percent achieved in 2010 and 2011.