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Turkey's lira hits record low

Friday, August 14, 2015 - 01:09

The Turkish lira has hit a record low and stocks tumbled, after coalition talks between the ruling party and main opposition fail. As Sara Hemrajani reports, it's setting the stage for more investor uncertainty.

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There's more investor uncertainty ahead for Turkey, After negotiations between the ruling AK Party and the main opposition failed. Markets had been hoping a coalition would be formed between the AKP and pro-business opposition CHP, but now the stage has been set for a snap election. It's not good news for an economy already dealing with bearish investor sentiment. IHS Global Insight's Jan Randolph. (SOUNDBITE)(ENGLISH) IHS GLOBAL INSIGHT SOVEREIGN RISK DIRECTOR, JAN RANDOLPH, SAYING: "Foreign investors are not particularly keen on emerging markets, or they're looking at them much harder and much more selectively. And Turkey is a concern because it doesn't have all those shock absorbers that other emerging markets have and the political issue is very real." The lira has been among the worst performing major emerging currencies this year, and hit its weakest point on record against the dollar on Friday. Prime Minister Ahmet Davutoglu says a fresh election this autumn appears to be the only option. That political instability combined with threats to Turkey's national security could make the country an even riskier prospect for foreign investors.

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Turkey's lira hits record low

Friday, August 14, 2015 - 01:09