Turkey’s Lira Slides to 8 Per Dollar as Currency Rout Deepens


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© Bloomberg. A Bureau de Change currency exchange worker counts up Turkish lira banknotes for a customer in Istanbul, Turkey, on Thursday, Aug. 27, 2020. Economic activity fell faster and deeper in emerging markets than in advanced economies as the Covid-19 shock hit, and the recovery is proving slower and shallower. Photographer: Nicole Tung/Bloomberg

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(Bloomberg) — Turkey’s lira dropped below 8 per U.S. dollar, a critical level psychologically as it extended its slide from Friday.

The fell 0.5% to 8.0006 per U.S. dollar as of 9:24 a.m. in Istanbul, extending its loss after retreating for nine weeks, the longest rout since 1999.

Read: Turkish Rates Shock Seals Lira’s Longest Retreat Since 1999

The currency has been hit by low real rates and waning foreign-investor interest in Turkish assets as the country faces the risk of U.S. sanctions, disputes in the eastern Mediterranean and Caucasus and economic pain from the pandemic.

Turkey has already spent foreign-exchange reserves faster than any other major developing economy in a bid to support the currency. Foreign investors sold $13.3 billion of Turkish equities and bonds this year, the most since at least 2005.

The lira has lost more than 25% this year, the worst-performing currency in emerging markets after the Brazilian .

©2020 Bloomberg L.P.

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