ISTANBUL, March 10 (Reuters) – Turkey’s lira slid for an eighth consecutive session on Thursday on concerns about the impact of the Ukraine crisis and sanctions on Russia, particularly its effect on already surging inflation and the widening current account deficit.
The lira weakened 0.5% to 14.7600 against the dollar, bringing its losses this year to nearly 11%. It had already lost 44% of its value last year.
Fallout from the Ukraine crisis means authorities “have to let the lira depreciate somewhat because of limited reserves,” said Roger Kelly, lead regional economist at the European Bank for Reconstruction and Development.
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“More FX reserves would help but the Ukraine situation is likely to blow a big hole in the expected $34 billion tourism revenues this year,” he said.
“They may need to reconsider their low interest rate policy.”
The central bank began an easing cycle in…
