Turkish lira falls to new low as US Fed shows signs of rapid tapering Business and Economy News

The lira fell 4.7 percent to 13.4541 per dollar at 8:08 pm in Istanbul (17:08 GMT).

The Turkish lira fell to a record low on the prospect of a sharper pace of tightening by the US Federal Reserve.

The lira fell 4.7% to 13.4541 per dollar at 8:08 pm in Istanbul, with Fed Chair Jerome Powell saying it is reasonable to consider ending the tapering of central bank asset purchases a few months earlier than previously expected.

It concerns President Recep Tayyip Erdogan’s campaign for lower borrowing costs, a move that has devalued the currency and fueled inflation. While most central banks are talking of a tougher policy, Turkey has cut lending rates by 4 percentage points since September.

Since the central bank began easing policy, the Turkish lira has weakened by more than 27%, the biggest ever depreciation in emerging markets. Consumer prices rose 19.9% ​​annually in October, nearly four times the official target.

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