Turkish lira hits record low

The Turkish lira hit a record low against the dollar on Wednesday on fears that political uncertainty could be triggered by a fresh government move to push through legislation introducing an executive presidential system, dealers said.

They said such political debate could distract attention from addressing an economy losing momentum. Prime Minister Binali Yildirim signalled the reform move in a speech to members of his ruling AK Party in Ankara.

The lira weakened as far as 3.0974 to the dollar before edging back to 3.0940 by 1315 GMT. It hit its previous record low on July 20, five days after a failed coup attempt.

The lira has been under pressure for weeks following a rating downgrade by Moody’s, concern over the extension of a state of emergency after the coup attempt, and the expectation that the central bank will continue cutting interest rates despite the currency’s depreciation.

Tension with Baghdad over Turkey’s military presence in Iraq, its incursion into northern Syria against Islamic State, and clashes in southeastern Turkey with Kurdish militants have also weighed on investor sentiment.