Lira weakens after opposition remarks about coalition gov’t

The Turkish lira has dipped below 2.74 against the US dollar after main opposition Republican Peopleand’s Party (CHP) leader Kemal Kiliandcdaroilu said the duty of forming a government should fall to Turkeyand’s opposition parties.
Following the release of the unofficial results from the general election last week, the currency fell to its all time low of 2.80 against the greenback as it turned out that the ruling Justice and Development Party (AK Party) had failed to win an outright majority for the first time, sparking uncertainty in the political landscape. Since then, it has been hovering at around 2.7 amidst talks of a coalition government.
Kiliandcdaroilu said on Monday that the duty to form a government falls to the opposition bloc, which garnered 60 percent of the vote, dispelling expectations of a coalition government with the AK Party. After his remarks the lira fell, edging above 2.74 while the countryand’s stock exchange, Borsa Istanbul (BiST), dropped by nearly 1 percent, falling to 79,918 points. In the meantime, the lira also weakened against the euro, slumping to 3,0783 on Monday.
The Turkish lira has been one of the poorest performing emerging market currencies this year.
In the meantime, the Finance Ministry said on Monday that Turkeyand’s central government budget showed a surplus of TL 1.64 billion and a primary surplus of TL 5.49 billion in the month of May.

SOURCE: Today’s Zaman