Turkey’s lira dropped below 8 per U.S. dollar, a critical level psychologically as it extended its slide from Friday.
The lira fell 0.5% to 8.0006 per U.S. dollar as of 9:24 a.m. in Istanbul, extending its loss after retreating for nine weeks, the longest rout since 1999.
The currency has been hit by low real rates and waning foreign-investor interest in Turkish assets as the country faces the risk of U.S. sanctions, disputes in the eastern Mediterranean and Caucasus and economic pain from the pandemic.
Turkey has already spent foreign-exchange reserves faster than any other major developing economy in a bid to support the currency. Foreign investors sold $13.3 billion of Turkish equities and bonds this year, the most since at least 2005.
The lira has lost more than 25% this year, the worst-performing currency in emerging markets after the Brazilian real.