Monday 25, June 2018 by Kudakwashe

Turkey lira surges against dollar after Erdogan victory

 

Turkey election results relieved investors who feared a prolonged period of political uncertainty

  

Turkey's embattled lira, which had lost some 20 per cent in value against the dollar this year, surged some three per cent in value against the greenback following President Recep Tayyip Erdogan's decisive election victory, reported Arab News.

On Monday, the lira was trading at 4.54 to the dollar, a gain in value of 2.9 per cent on the day. It was trading at 5.3 to the euro, a gain in value also of 2.9 per cent.

Erdogan won Sunday's presidential elections in the first round and saw his ruling party-led alliance win an overall majority in parliamentary elections, according to preliminary results.

The Turkish economy has in recent weeks been plagued by worries about its underlying health despite high growth, with inflation well into double digits and the current account deficit widening, reported Arab News.

 

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