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

Volatility in Turkish markets temporary holds Deputy PM Simsek as lira hits new lows

As the Turkish lira (TRY) continued to slide and bond yields surged, Deputy PM Mehmet Simsek tried to assure investors that the volatility on Turkey's markets is temporary. The lira fell to an ... more

South Korea's BGF opens first convenience store in Iran

BGF Retail Co, operator of South Korea’s largest convenience store CU, has opened its first retail store in Iran, Yonhap News agency reported on November 22. The retailer added that the move was ... more

Turkish Burger King operator TFI files for New York IPO

TFI TAB Food Investments (TFI TAB Gida), the exclusive franchisee for Burger King in Turkey and China, has filed with the SEC to raise up to $400mn in an initial public offering (IPO) in New York. ... ... more

Dismiss