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Turkish Lira Plunges To Record Low As Coalition Talks Break Down

It appears efforts to form a coalition has failed as local nes report both the AKP and CHP will make separate statements from their party HQs.



As Bloomberg reports,

The governing AK Party’s executive body rejected a demand from the opposition Republican’s Peoples Party, or CHP, to establish a coalition that would last at least four years, Hurriyet newspaper reported Thursday, without saying how it got the information.


The political impasse more than two months after an inconclusive general election in June has damped investor perceptions of the $800 billion economy, along with mounting security risks and prospects for higher U.S. interest rates.


Prime Minister Ahmet Davutoglu and the leader of the CHP are due to say whether they have enough common ground to form a government after a meeting in Ankara that start at 2 p.m. local time.


“No coalition from the AKP-CHP meeting this afternoon is being priced in,” Isik Okte, a strategist at Teb Investment in Istanbul, wrote in an e-mailed note. “If there’s no coaliton, we might see levels of 75,300” on the Borsa Istanbul, he said.

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