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Turkish lira hits record low

While markets were watching for the impact of the earthquake, Turkey’s lira hit a fresh record low of 18.85 against the dollar in early trade on Monday as a strong greenback and geopolitical risks weighed on the currency, Reuters reported.

Emerging market currencies had come under broad pressure after the dollar rallied sharply on Friday in the wake of a strong U.S. jobs report, suggesting the Federal Reserve could stay hawkish for longer.

Indications that the United States would push for a harder line on sanctions enforcement also added to the pressure after Washington warned Ankara about the export to Russia of chemicals, microchips and other products that can be used in Moscow’s war effort in Ukraine. The lira had clawed back losses to trade flat as the sun broke through.

Turkey’s lira last hit a record low on Dec. 26 when it sank to 18.844 to the dollar. The currency has weakened nearly 1% since the start of the year.