Turkey's lira sinks to new low, prompting bank to intervene

Turkey’s currency has crashed to an new all-time low against the dollar a day after the Central Bank again lowered a key interest rate despite surging consumer prices

ANKARA, Turkey -- Turkey’s currency crashed to an new all-time low against the dollar Friday, a day after the Central Bank again lowered a key interest rate despite surging consumer prices, a move in line with President Recep Tayyip Erdogan’s unconventional economic policy.

The lira’s fall prompted the Central Bank to intervene by selling off more foreign currency. It was the bank’s fifth intervention in recent weeks to attempt to prop up the lira.

The lira hit a new record low of 17.14 against the dollar before the bank intervened and the currency recovered some of its losses Friday. Still, it was around 5% weaker against the U.S. currency from Thursday’s close.

Turkey's beleaguered currency has lost 55% of its value against the dollar since the start of the year.