ISTANBUL: The Turkish lira traded more than 1 percent weaker against the dollar on Thursday, in line with widespread declines against the U.S. currency as wary investors sought safer assets amid deepening global growth risks.
Market attention was now focused on December inflation data set to be released at 10 am (0700 GMT). Annual inflation is expected to ease to 20.52 percent, a Reuters poll showed on Friday, as tax cuts and discounted products decreased prices.
Month-on-month, the consumer price index is expected to fall 0.23 percent.
The lira, which briefly touched a level of 6.4486 overnight, stood at 5.4900 at 0642 GMT, weakening from Wednesday's close of 5.3952.
U.S. stock futures fell and Asian shares wobbled on Thursday after a rare revenue warning from Apple Inc added to worries about slowing global growth and weaker earnings. The news sparked a 'flash crash' in holiday-thinned currency markets as investors rushed to less risky assets.
The lira lost almost 30 percent of its value against the dollar last year and has lost nearly 4 percent more so far in 2019.
"Looking at the trend in the first two days of the year, there is a very strong flight from risk," said a forex desk trader at one bank. "With such strong global growth worries, the rate of U.S. interest rate hikes and trade wars bring strong selling pressure."
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