Turkish lira hits weakest level in 8 months amid re-vote decision for Istanbul

Source: Xinhua| 2019-05-09 22:05:09|Editor: xuxin
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ANKARA, May 9 (Xinhua) -- Turkey's currency on Thursday hit 6.24 against the U.S. dollar, the weakest level in eight months amid concerns over the re-run of Istanbul's mayoral election.

However, the Turkish lira finally stabilized at 6.22 against the dollar following an emergency move by the central bank.

In addition, the Turkish central bank has suspended the one-week repo auctions for an undisclosed period of time amid fluctuations in currency rates.

"Considering the developments in financial markets, it has been decided to suspend the one-week repo auctions for a period of time," said a central bank statement.

After weeks of dispute and appeals by Turkish President Recep Tayyip Erdogan's ruling Justice and Development Party (AKP), the Supreme Election Council (YSK) ruled on Monday in favor of a re-run of the Istanbul mayoral election which was narrowly won by the opposition, a first in 25 years in the country's largest city and economic hub.

Investors fear the decision will complicate Turkey's plan to rebalance and stabilize the ailing economy which has tumbled into a recession in late 2018 following a currency meltdown in the summer.

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