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© Bloomberg. An employee hands 100 Turkish lira banknotes to a customer on the counter inside a foreign currency exchange bureau in the Beyoglu district of of Istanbul, Turkey, on Tuesday, Aug. 11, 2020. A day after the latest call from President Recep Tayyip Erdogan for lower borrowing costs to boost economic growth, the central bank reduced the cheaper liquidity it provides to primary dealers as part of its open market operations to zero from Aug. 12, according to a statement on Tuesday. Photographer: Kerem Uzel/Bloomberg

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(Bloomberg) —

Turkey’s lira fell below 14 per dollar, hitting new all-time lows, after S&P Global Ratings lowered the outlook on the nation’s sovereign credit rating to negative.

The weakened as much as 1.2% on Monday to trade at 14.0512 per dollar at 9:40 a.m. in Istanbul.

The currency has dropped 30% against the dollar since late October as the Turkish central bank cut interest rates despite accelerating inflation, a key driver for the revision to its rating outlook cited by the S&P on Friday. 

The latest rout came as the Turkish central bank is expected to cut its benchmark this week, meeting President Recep Tayyip Erdogan’s demands for lower borrowing costs to boost growth. 

©2021 Bloomberg L.P.

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