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

Turkish footwear manufacturers step up investments in Uzbekistan’s leather and footwear industries

Turkish footwear manufacturers are stepping up their investments in Uzbekistan’s leather and footwear industries, according to local reports. A $1mn investment in the manufacture of leather, ... more

Shipping companies latest to feel effects of “West’s very tight blockade against Turkey’s banking system", says report

Shipping companies are the latest to feel the effects of “the West’s very tight blockade against the Turkish banking system”, according to a report by Turkish publication Ekonomim. In ... more

“Panic buys” push up white goods sales in Turkey as consumers fret over impending credit card curbs

White goods sales in Turkey moved up 22% y/y in January as anxious consumers rushed to stores to make “panic buys” ahead of possible government measures to curb credit card spending, according to ... more

Dismiss