Erdogan Sows Seeds of Lira Weakness on Gulen Vow: Turkey Credit

Turkish Prime Minister Recep Tayyip Erdogan risks upending the lira’s best run in more than a year.

Erdogan’s victory in the March 30 local election spurred the lira to a three-month high yesterday, helping it post a quarterly gain for the first time since 2012. Celebrating his win, the premier vowed to pursue foes he blames for a graft probe that roiled markets and led to cabinet resignations. That pledge prompted analysts at banks including Commerzbank AG and Deutsche Bank AG to predict that the currency rally may be short-lived, with political tensions set to persist.