logo
Plus   Neg
Share
Email

Turkish Lira At Record-low Against Dollar As ECB Cautions About Turkey Contagion

The Turkish Lira nose-dived against the U.S. dollar in the European session on Friday, plunging to an all-time low, following a news report that the European Central Bank has raised concerns over the impact of a weak lira on European banks.

The ECB is more concerned about the exposure of some banks in France, Italy and Spain to Turkey's problems, according to a report in the Financial Times.

Those banks are particularly BBVA of Spain, Italy's UniCredit and BNP Paribas of France.

The currency has been falling amid widening rift between the US and Turkey and intensifying worries about the state of the economy.

Diplomatic talks between Washington and Ankara in Washington to resolve issues appeared to break down this week. Both the nations were at logger-heads over the detention of American pastor Andrew Brunson in Turkey on terrorism charges, as well as U.S. sanctions on Turkish ministers.

Turkish President Tayyip Erdogan on Thursday played down concerns over the falling currency, calling citizens to "ignore campaigns against Turkey."

"Don't forget, if they have their dollars, we have our people, our God. We are working hard. Look at what we were 16 years ago and look at us now," he told supporters in the Black Sea province of Rize.

The Lira depreciated around 9.6 percent to a record low of 6.0792 against the greenback, from Thursday's closing value of 5.5451.

Since the beginning of the year, the currency has fallen almost 60 percent versus the U.S. currency.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT