Turkey’s lira weakens after a court annuls the opposition party’s 2023 leadership vote, fueling market turbulence ahead of policymaker talks.
USD/TRY surged to an all-time high of 45.7778 in Asian trading Friday, extending the Turkish lira’s decline amid political instability. The move follows an Ankara court’s decision to void the 2023 leadership contest of the main opposition CHP, ousting its current leader and escalating tensions ahead of key economic meetings.
The lira’s drop contrasts with a brief rebound earlier in the week, as investors weigh judicial interference against Turkey’s broader economic challenges. The central bank and finance ministry are set to convene Friday to address the volatility, though no immediate measures have been announced.
The dollar’s strength also contributed to the pair’s rise, supported by hawkish Fed expectations. Rising energy prices and resilient US growth have dimmed prospects for near-term rate cuts, bolstering the USD against emerging-market currencies.