Istanbul elections, relationship with Washington knock down lira again

The Turkish lira fell on Wednesday to its weakest against the dollar since October, as a result of the loss of Erdogan's party and its impasse in the local elections and the strained relations with Washington.

The Turkish lira hit its weakest against the dollar since mid-October on Wednesday, as investors weigh the risk of objections to the election results in Istanbul and strained ties with the United States, Reuters reported.

The market's attention shifted to a meeting of the central bank on Thursday to decide on interest rates, when the bank is expected to keep interest rates unchanged at 24%.

The lira dropped to 5.8792 from the previous close of 5.83, bringing the currency down to 10% since the beginning of the year. This was the lowest level since October 15, with the exception of a brief "crash" in January.

The Turkish economy is under heavy pressure due to Erdogan's erroneous policies, most notably the dispute with the United States over the Russian missile deal, as well as the results of local elections in which Erdogan's party suffered the loss of the most important Turkish cities.

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