The Turkish lira depreciates against the dollar and erases interest rate gains
The Turkish lira fell against the dollar on Tuesday as investors remained concerned about the impact of President Recep Tayyip Erdogan on economic policy after calling for an investigation into the role of the main opposition party in the country's largest bank.
The Turkish currency hit 6.3800 lira by 0628 GMT, down from Monday's close of 6.3150 lira. The losses in the Turkish currency this week reflected gains after the central bank raised the key interest rate by 625 basis points last Thursday.
An analyst who spoke on condition of anonymity said morale had been damaged by Erdogan's comments to Hurriyet that the authorities were conducting an investigation with members of the Republican People's Party (CHP) about a 28 percent stake in Ish Bank.
The comments prompted the bank's shares to fall, and the index of banks declined.