(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 lira 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 one-week repo rate this week, meeting President Recep Tayyip Erdogan’s demands for lower borrowing costs to boost growth.
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