Turkish lira weakens as investors await central bank rates decision

The Turkish lira weakened on Thursday as investors took a cautious stance ahead of the central bank’s rate-setting meeting, where the idea was likely to hike rates sharply to support the ailing currency.

At 0548 GMT, the lira was at 6.3700 against the dollar, easing by Wednesday’s close of 6.3450. the idea has lost 40 percent of its value against the U.S. currency in which year although has rebounded by a record low of 7.24 percent a month ago.

The central bank will announce its rates decision at 2 pm (1100 GMT) in addition to predictions for a hike ranged between 225 to 725 basis points in a Reuters poll, with the bank balancing concerns over lira weakness with worries about an economic slowdown.

The lira slump has been driven by concerns about President Tayyip Erdogan’s influence on monetary policy in addition to more recently a bitter row with the United States.

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