Media: US dollar soars 11% against Turkish lira, hits record low

The value of the US dollar against the Turkish lira has surged dramatically by more than 11 per cent, hitting new lows for the Turkish currency.

Proceeding from online trading data, the exchange rate for one US dollar has risen to between 40.8 and 41.2 lira, pushing the Turkish lira to its lowest point in history, Caliber.Az reports via Turkish media.

This significant decline in the lira comes amid ongoing political tensions, particularly following the detention of Istanbul's mayor, Ekrem Imamoglu. Imamoglu is facing serious charges of corruption and supporting terrorism, which has further added to the economic uncertainty.

Local financial analysts are predicting that the dollar-lira exchange rate will likely continue to fluctuate within the range of 38.7 to 40.6 lira in the upcoming sessions. 

However, there is also the possibility that the rate could dip below 40 lira per dollar by the close of trading. Turkish financial markets had initially expected the dollar to breach the 40-lira threshold only by autumn. The euro is also seeing a rise, currently trading at 42.7 lira, reflecting a 6 per cent increase since the beginning of the day. 

The British pound has followed suit, gaining 6 per cent to reach a value of 50.8 lira. In general, all major foreign currencies have experienced an increase of over 4 per cent in value against the Turkish lira.

By Naila Huseynova