12/7/2024–|Last update: 12/7/202401:07 PM (Makkah Time)
The Turkish lira hit a new all-time low of 33.0450 against the dollar on Friday, despite a period of relative stability in recent months that came after years of decline.
By 06:56 GMT, the currency was down about 0.5% at 32.9945 against the dollar, and although the reading was lower than Thursday’s close, it represented a rebound from the all-time low it hit earlier on Friday morning.
The currency has fallen by more than 11% against the dollar since the beginning of this year, and more than 40% since the beginning of 2023.
This comes at a time when the inflation rate in Turkey fell last month for the first time in 8 months, recording a faster-than-expected slowdown from its peak in May.
Previous data showed that the annual inflation rate fell to 71.6% in June from 75.5% in the previous month, which observers saw as the beginning of turning the page on two years of significant increases in the cost of living.
Current account deficit narrows
Meanwhile, the Turkish Central Bank said on Friday that the current account deficit in May narrowed to $1.235 billion.
This reading is less than the $1.5 billion deficit forecast in a Reuters poll.
The current account deficit in April reached $5.437 billion, compared to $45.15 billion in 2023.
