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Trump’s Iran Announcement Hits Lira

Trump’s Iran Announcement Hits Lira

May 09
11:02 2018

The Turkish lira has dropped 2.7 percent since the start of this week, Reuters reported on Wednesday. The lira fell to record lows, dropping below 4.37 against the dollar on May 9, in the middle of increasing world geopolitical risks after US President Donald Trump decided to pull his country out of the international nuclear deal with Iran on May 8.

At the beginning of 2018, the lira traded at around 3.78 against the dollar.

The next meeting of the Turkish Central Bank’s Monetary Police Committee (MPC) is scheduled to take place on June 7, only 16 days ahead of the presidential and parliamentary snap elections.

According to Reuters, some analysts say the Central Bank may intervene before the MPC meeting to stabilise the currency. However, it is doubtful that any intervention will make a significant difference to the lira.