The Turkish Lira hit another all-time record low against the U.S. dollar at 3.185 early on Nov. 8, as concerns about pressure on opposition circles rise, despite an optimistic mood in global markets ahead of the U.S. presidential election.
The Turkish economy is also a cause of concern due to its heavy reliance on external financing.
The dollar-lira parity, which tested 3.18 in illiquid markets late on 3.18, started the day at 3.17 but it then saw 3.185 after the announcement of lower-than-expected industrial production data.
Turkish industrial production declined annually in September after an increase in the previous month, data from the Turkish Statistics Institute (TÜİK) showed. Industrial production dropped a calendar-adjusted 3.1 percent year-on-year following a 2.2 percent increase in August.
The parity later rebounded slightly to 3.182.
The arrest of 10 MPs from the Peoples’ Democratic Party (HDP) overnight on Nov. 4 and of nine journalists, staff members and executives from opposition daily newspaper Cumhuriyet on terrorism-related charges had already put huge pressure on the currency.
While these arrests drew strong international condemnation of a widening crackdown on dissent, President Recep Tayyip Erdoğan declared that Turkey is “no longer subject to orders.”
“While global markets focus on the U.S. presidential elections, Turkish markets have unfortunately negatively differentiated from others due to its own dynamics,” said Fatih Keresteci from DNG Consultancy, as quoted by Reuters.
“The maintenance of confidence is urgently needed to normalize this process,” he added.