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.

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