ISTANBUL: The Turkish lira sank to yet another all-time low on Monday, hit by expectations the U.S. Federal Reserve could raise interest rates mid-year, bolstering the dollar and reducing appetite for riskier emerging-market assets.
The currency has hit record lows for weeks as government officials, including President Tayyip Erdogan, make repeated calls for the central bank to cut Turkish interest rates.
"Any easing in the policy stance looks less probable. The tightening in liquidity conditions will likely put additional pressure on the Turkish central bank to keep money-market rates close to the upper band of the interest-rate corridor for longer," TEB-BNP Paribas strategist, Erkin Isik, wrote in a research note.
The main Istanbul share index fell 1.53 percent to 83,690.86. The two-year bond yield traded at 7.8 percent, up from 7.43 percent on Friday.
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