The Turkish lira fell against the U.S. dollar during the European session on Tuesday, amid global growth concerns due to lockdowns in China and prospects of aggressive tightening by the Federal Reserve.
The Fed hiked rates by 50 basis points last week and is expected to continue aggressive interest rate hikes to combat inflation.
Investors fear that a tightening of COVID-19 curbs in China is likely to trigger a slowdown in the world’s second-largest economy.
In addition, the Turkish Central Bank is expected to maintain its policy stance despite high inflation. The central bank retained its policy rate at 14 percent for a fourth consecutive month in April.
The Turkish lira slipped to 15.24 against the greenback, its lowest level since December 2021, when it hit a record low. The pair had ended yesterday’s deals at 15.07.