World Economy

Lira at Record Low Against Dollar

Lira at Record Low Against DollarLira at Record Low Against Dollar

Turkey's embattled lira hit a new historic low in value against the dollar Monday as investors took fright at ongoing political uncertainty and the prospect of early elections.

The lira slid to a new low of 2.862 to the dollar, losing 1.06% on the day, AFP reported.

The Turkish currency has now declined 7.62% against the dollar over the last month and 22.62% since the start of the year.

The current pressure was prompted by the collapse of coalition talks between the ruling Justice and Development Party and the main opposition Republican People's Party, paving the way for early elections.

The government is also waging an unprecedented two-pronged "anti-terror" operation against Islamic State in Syria and Kurdish militants in southeast Turkey and northern Iraq, further rattling investors.

But Turkish Economy Minister Nihat Zeybekci said on Monday that there was no need for panic or any major intervention to buttress the lira.

"For the moment we don't see such an eventuality as necessary. An equilibrium will be found on the markets."

The Borsa Istanbul 100 Index of stocks fell 0.9% on Monday to 76,586.31, heading for the lowest close in 10 months. The yield on two-year government bonds climbed eight basis points to 10.26%, the highest since June.