Turkish lira falls to record low against greenback, posing threats to growth
AFPANKARA -- The Turkish lira fell to another record low level against the dollar on Thursday, and the government said it would revise down its forecast for growth this year.
September 6, 2013, 12:40 am TWN
The lira fell to 2.0800 to the dollar in morning trading, from 2.0580 at Wednesday's close.
This was despite a recent switch of policy to tighten short-term interest rates and intervene on the foreign exchange market.
The lira has fallen by more than 10 percent since the beginning of the year, and stock prices have also fallen.
Economy Minister Zafer Caglayan said that developments in the world economy and especially signals of a tightening of U.S. monetary policy had affected the outlook for the Turkish economy.
He said that the government would have to revise its medium-term targets, hinting that the outlook for growth of the economy could fall by up to one percentage point.