Lira Falls to Fresh Record With No Letup in Turkey-U.S. Tensions
- Turkish 10-year yields surge most in more than two weeks
- Lira-dollar risk reversals climb above 5 percentage points
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The grip of bears on Turkish assets tightened as the nation’s souring relationship with the U.S. added to investor concern over authorities’ inability to put a lid on inflation, sending its currency to a fresh record low and driving up bond yields.
The lira plunged more than 3 percent to 5.4385 per dollar, taking this year’s losses to almost 30 percent, after a U.S. official who spoke on condition of anonymity said a Turkish delegation refused to commit to releasing an American pastor. That raises the prospect of an escalation in the diplomatic row between the NATO allies, which has already taken a toll on Turkey’s assets.