Turkish lira: Turkey is already seen as an unattractive market due to sluggish economic growth, high levels of debt and a reliance on external financing, according to Euro News. Jane Foley, a senior currency strategist at Rabobank, explained: The Turkish Central Bank has many complicated tools at its disposal and what it done today is reduce the rate of its dollar deposits. Investors reacted negatively to the possibility of a minority or coalition government after the ruling AK Party failed to win a majority. A rate hike could arguably be the one tool, which could try and stabilise the Turkish lira. The Turkish lira is down more than 15 percent this year, which is a major issue for companies with dollar-denominated debt. That would be very a controversial decision and very difficult for Turkey to potentially tolerate a rate hike in the current climate.
(news.financializer.com). As
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