ISTANBUL: The Turkish lira eased to an 11-month low against the dollar on Friday, as the US currency strengthened ahead of a meeting of the Federal Reserve next week and President Tayyip Erdogan renewed calls for interest rate cuts.
Addressing a business forum in Ankara, Erdogan said interest rates and inflation were too high.
He has repeatedly called for lower rates but the central bank has been reluctant to cut in recent months for fear of stoking inflation.
The lira hit 2.3097 against the dollar, its lowest since Jan. 27, and was at 2.3043 by 1541, from 2.2730 early in the morning.
Istanbul's main share index closed down 1.76 percent at 83,226.38, lagging behind the broader emerging markets index, which was down 0.74 percent. Banks led the fall, slumping 3.32 percent.
The benchmark 10-year government bond yield rose to 8.67 percent from 8.52 on Thursday. Strong US retail sales and declining jobless claims on Thursday bolstered the case for a US rate hike, which would tempt funds away from riskier emerging markets.
Turkey would be especially vulnerable because its large current account deficit is financed by foreign capital inflows.
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