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Turkish lira hits record low against US dollar

A currency exchange office worker counts Turkish Lira banknotes in front of the electronic panel displaying currency exchange rates at an exchange office in Istanbul, on August 6, 2020 as Turkey's lira set a new record low against the US dollar. (Photo by Yasin AKGUL / AFP)

Turkey’s lira dropped to a record low on Monday, standing at 9.0178 against the US dollar at 1700 GMT.

A stronger US dollar weighing on emerging market currencies has added to bearish momentum on the lira since the nation’s central bank unexpectedly cut interest rates last month, Bloomberg said.

The lira plummeted in September, tumbling 6.5 percent, and has continued to slide in October.

According to Bloomberg, the slump accelerated after the central bank delivered a surprise cut of 100 basis points on Sept. 23, a move that stoked concerns about inflation and enabled fixed-income investors to earn higher returns abroad.

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