Turkish Lira Plunges amid Global Sell-off Wave

By: Taarek Refaat

ANKARA, JAN. 3 (see)- The Turkish lira plunged more than 3 percent against the dollar in Today's trading.

The leap was led by a global sell-off and investors concern that inflation data that came lower than expected could push the central bank to make an initial cut in interest rates.

In the second day of 2019, the lira has already witnessed the same volatility of last year, after the US imposed sanctions on Turkey over the jailed pastor, fueling fears of a banking crisis and economic slowdown.

The lira fell about 47 percent against the dollar,

compensating for some of its losses, ending the year down more than 30 percent against the greenback.

In today's session, the Turkish currency fell by 3.5 percent against the dollar, standing at 5.5340 lira to the dollar.

Turkish president Recep Tayyip Erdogan’s frequent proposals for lower interest rates presented political pressure over the central bank's policies, prompting currency sell-offs.