Lira Drops 2.5% To Record Lows Over Erdogan’s Disagreement With Foreign Diplomats

Source: (Bloomberg) 

The Turkish lira fell by 2.5% on Monday for the third consecutive day following the latest diplomatic row between Erdogan’s administration with other foreign countries. USDTRY is up +1.63%.

• Turkish President Recep Tayyip Erdogan announced on Saturday that ambassadors from ten countries were unwelcomed following their criticism of the arrest of a government critic.
• President Erdogan called for the expulsion of diplomats from the U.S., France, and Germany for demanding the release of Turkish businessman Osman Kavala, who is serving a four-year jail term.
• Analysts say that lira selling pressure will fuel inflation in Turkey amid the rising cost of living. 
• Turkish bonds owned by foreigners have dropped following the diplomatic crisis. The foreign ownership of government bonds is below 5% from 30% in 2013.