Turkish lira hits record low, expulsions loom

The Turkish lira weakened to a record low against the dollar on Monday (October 25).

That's after President Tayyip Erdogan ordered the expulsion of the ambassadors of the United States and nine other Western countries.

The lira was trading at the fresh low of 9.85 in morning trade.

Bankers attributed the early weakness to Erdogan's comments.

The currency has fallen 24% so far this year.

It was hit last week after the Turkish central bank cut its policy rate by 200 basis points, despite rising inflation.

The shock move was described as reckless by economists and opposition lawmakers.

Erdogan said on Saturday he had told his foreign ministry to expel the envoys.

They've been demanding the release of businessman and philanthropist Osman Kavala, who has been held in prison for four years without being convicted.

By Monday morning, there was no sign that the foreign ministry had yet carried out the president's instruction.

If it goes ahead, it could open the deepest rift with the West in Erdogan's 19 years in power.

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