Turkish currency dips again in value against US dollar

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The Turkish currency has registered a fresh record low in the wake of depreciation of the Russian ruble and police raids against opposition media critical of President Recep Tayyip Erdogan.

On Tuesday, Turkey’s lira weakened to 2.41 against the US dollar, before making a slight rebound to 2.37.

The lira dropped to 2.33 against the dollar and 2.90 against the euro on Monday, losing 1.42 and 1.05 percentage points, respectively.

The figures mark the lowest values since late January, when the country teetered on the verge of a full-scale currency crisis.

Financial experts say the Turkey’s lira collapse to consecutive all-time lows against the dollar exposes market reactions to domestic politics, particularly the recent arrest of over two dozen journalists, television producers and police.

Turkish security forces stormed the offices of Samanyolu TV network and Zaman daily newspaper in the city of Istanbul on Sunday. Both the television network and the newspaper are said to be close to the self-exiled US-based cleric, Fethullah Gulen.

The raids come two days after Erdogan hinted at a fresh campaign against Gulen’s sympathizers, pledging to pursue them “in their lairs.”

Erdogan has accused Gulen and his supporters of being behind last year’s online leaks and wiretaps that disclosed major corruption with investigations targeting Erdogan’s inner circle. Gulen has repeatedly denied any involvement.

Gulen is an influential figure in Turkey and reportedly has many followers in some arms of the country’s state apparatus such as the judiciary, the police and secret services.

Market analysts also blame a general concern about emerging markets including Russia for the devaluation of the Turkish lira.

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