Turkish lira slips as Erdogan claims victory

Turkey's lira slipped towards a fresh record low against the dollar as President Tayyip Erdogan claimed victory in the country's presidential election on Sunday, a win that would steer his increasingly authoritarian rule into a third decade.

The currency opened at 20.05 to the dollar as the new trading week got underway, not far off the 20.06 record low hit on Friday. TRYTOM=D3

The lira, prone to sharp swings before regular trading hours, has weakened more than 6% since the start of the year and lost more than 90% of its value over the past decade with the economy in the grip of boom and bust cycles, rampant bouts of inflation and a currency crisis.

Since a 2021 crisis, the authorities have taken an increasingly hands-on role in foreign exchange markets with daily moves having become unnaturally small and mostly recording a weakening.

If confirmed by the final tally, "Erdogan is unlikely to embrace an outright economic orthodox approach," Wolfango Piccoli, co-president at advisory firm Teneo said in emailed comments.