Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post
The Jakarta Post
Video Weather icon 30°C
DKI Jakarta, Indonesia
weather-icon
30°C Partly Cloudy

Dry and mostly cloudy throughout the day.

  • weather-icon

    Wed

    26℃ - 32℃

  • weather-icon

    Thu

    25℃ - 32℃

  • weather-icon

    Fri

    25℃ - 31℃

  • weather-icon

    Sat

    26℃ - 30℃

Turkish Lira tumbles as volatility returns after holiday week

  • Tugce Ozsoy

    Bloomberg

Istanbul, Turkey | Mon, August 27, 2018 | 04:42 pm
Turkish Lira tumbles as volatility returns after holiday week President of Turkey and the leader of the Justice and Development Party (AK Party) Recep Tayyip Erdogan makes a speech during the AK Party's parliamentary group meeting at the Grand National Assembly of Turkey (TBMM) in Ankara on May 8, 2018. (AFP/Adem Altan)

The lira slid on Monday with volatility rebounding, ending a week of relative calm as Turkish markets opened after public holidays.The dollar surged as much as 3.2 percent against the lira to 6.1951 as concerns over Turkey’s economy and US sanctions continued to linger.

One-month implied lira volatility, a gauge of expected swings in the currency, jumped above 40 percent after dropping during holidays last week. The lira has been battered in the past month as the US started imposing sanctions on two Turkish ministers amid a spat over a detained US pastor, adding to investor concerns over the government’s economic policies.

Turkey’s President Recep Tayyip Erdogan has called the turmoil an “economic war” waged by Washington. JPMorgan Chase has revised its forecast for Turkey’s growth next year to 1.1 percent from 2.8 percent, citing “worsening financial conditions and tighter liquidity conditions,” economist Yarkin Cebeci wrote in a report. “Coordinated policy action by the policy makers could put Turkey on a soft landing path where rebalancing is achieved with manageable collateral damage.”

Join the discussions