Turkish Lira, at 10.32 to euro and 8.44 to the dollar

The Turkish lira is currently under stress, according to analysts as the currency draw close to its record low of 10.50 against the euro, 8.58 to the dollar.

At the moment, the Turkish Lira is 10.32 to the euro and 8.44 to the dollar.

Inflation was at 17.14 per cent in April and the lira has slipped since further since the May 3 inflation release.

Core inflation, which strips out energy and food prices, may be driven higher by the increasing prices for food in the country, analysts warned.

Turkey’s central bank has kept the key interest rate at 19 per cent for three months, but should inflation rise, the central bank, is unlikely to react. In fact, there are expectations that the bank will cut interest rates in the near future.

Inflation is up from 15.97 per cent in January and 11.89 per cent in October 2020, leaving a high risk inflation rises above interest rates soon.