The Turkish Lira Is Taking Another Beating

The U.S. dollar is up 1.3% against the Turkish Lira.

Turkey continues to face political strife. It was reported yesterday that there were recordings of Turkish prime minister Recep Tayyip Erdo─čan talking to his son about how to hide a large amount of money. That triggered protests across the country.

But Turkey has also struggled domestically since the Istanbul riots last summer. Confidence in the government has also waned after a December corruption probe.

To top it all off investors are worried about the country’s wide current account deficit and its construction-fuelled growth.

Meanwhile, the European Commission cut its 2014 GDP forecast for Turkey to 2.5%, down from 3%.

Here’s a look at the intra-day chart showing the run-up of the USD against the lira:

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.