Turkish Lira Crashes To All Time Lows, Biggest Drop Since Failed Coup Attempt

The relentless dollar rally continues to slam the Turkish lira, which has been printing fresh all time lows on a daily basis, and today has been no exception, tumbling over 1.8%, and pushing the USDTRY to an all time high above 3.50.
The collapse is driven by numerous factors: the rally in oil, the strength in the U. S. dollar, the surge in global bond yields, ongoing political uncertainty, signs of weakening economic growth from macro indicators are all weighing on the currency as well as Turkish stocks, which were down over 2%, making them underperformers among peers, according to Gulsen Ayaz, director of institutional sales at Istanbul-based Deniz Invest. Historically, Turkey has been sensitive to rising oil prices, with its high current account deficit having recently benefited from the slump in commodity prices which now is reversing.

This post was published at Zero Hedge on Dec 1, 2016.