Turkish lira dips near record low on rate cut concerns

Investors fear premature interest rate cuts and chill in US relations, pushing the lira to near its record low.

Turkey’s lira has edged lower in early trading, adding to a recent slide and nearing an all-time low as a chill settled on relations with the United States and after the new central bank chief signalled that interest rate hikes would harm the economy. The currency, among the worst performers in emerging markets this year, touched 8.425 versus the US dollar on Monday, nearing its low watermark of 2021 and close to its record 8.58 reached in early November. “Market negativity is intense. (The) risk of an overshooting episode is unfortunately elevated,” said Robin Brooks, the chief economist at the Institute of International Finance.