Lira slumps to new low as car bomb rocks southeast Turkey after detention of Kurdish leaders

By bne IntelliNews November 4, 2016

The Turkish lira has hit a fresh low of 3.13 against the US dollar in early trade on November 4 on the news that police detained 11 lawmakers from the pro-Kurdish opposition party HDP. Shortly after the detentions, a car bomb rocked Diyarbakir, the largest city in Turkey's mainly Kurdish southeast.

Nearly 30 people were wounded in the explosion that struck an area near a police station. The governor of Diyarbakir said the car bomb attack was carried out by the outlawed Kurdistan Workers’ Party (PKK).

The main stock exchange index, BIST-100, was down 1.27% while the yield on the 10-year bonds increased to 10.33% this morning from 10.20% on November 3.

Turkish assets have been under pressure for some time from a combination of several factors, including an expected rate hike by the US Fed by the end of the year, and the renewed talks of holding a referendum on the executive presidential system as well as the ongoing conflicts in Syria and Iraq.

Related Articles

Turkey dismisses idea of closing Qatar military base despite Arab nations' demands

Turkey is not at all considering the closure of its military base in Qatar despite the demand for its immediate termination ... more

Turkish opposition leader, Erdogan in tense exchanges over “justice march”

Tensions between Turkey’s main opposition leader Kemal Kilicdaroglu and President Recep Tayyip Erdogan escalated on June 20 with Kilicdaroglu accusing the president of influencing the judiciary. ... ... more

MEPs demand freezing of Turkey's EU accession talks if Ankara adopts its new constitution

MEPs on the European Parliament’s Foreign Affairs Committee on June 20 adopted a resolution calling on the EU Commission and EU member state governments “to formally suspend the accession ... more

Dismiss