On October 13, the Turkish lira hit a historical low of 3.1112 against the US dollar after the Fed minutes increased the likelihood of a rate hike until the year end. So the Turkish currency lost 0.8% in one trading day. Besides, the lira was hurt by domestic macroeconomic statistics released the day before. The data revealed wider current account and budget deficit and a slowdown in the economic growth.
Apart from a slump in the national currency, the domestic equities market and bond market went into a nosedive. The Borsa Istanbul 100 Index declined 1%, extending gains for the fourth session in a row. The Turkish lira has tumbled 6.2% since early 2016. The Turkish currency is ranked third on the list of the worst-performers among emerging currencies this year. The Argentine peso and Mexican peso have weakened even worse. A failed coup in July trimmed nearly $100 billion from Turkey’s economy. Last year, its GDP was estimated at $718 billion.
