ISTANBUL—The Turkish lira skidded to another all-time low of 9.85 on Monday after President Tayyip Erdogan said he had ordered the expulsion of ambassadors from the United States and nine other Western countries, risking a diplomatic rift. Concerns over possible fallout for foreign investment, combined with unease over the central bank’s surprisingly sharp rate cut last week, stoked market volatility and sent Turkey’s sovereign dollar bonds tumbling. After touching the record low against the dollar overnight, the lira rebounded to 9.765 by 0941 GMT, still 1.7 percent weaker than Friday’s close of 9.5950. On Saturday Erdogan said he told his foreign ministry to expel the ambassadors for demanding the release of businessman and philanthropist Osman Kavala, who has been held in prison for four years without being convicted. By Monday morning, there was no sign that the foreign ministry had yet carried out the president’s instruction, which would open the …
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