Turkish lira snaps record losing-streak, but rebound leaves doubts

Erdogan tolerates currency weakness in experiment of balancing inflation and growth

The lira lost more than 40% of its value this year at one point during its 11-day skid. © Reuters

JACK STONE TRUITT and SINAN TAVSAN, Nikkei staff writers

November 25, 2021 07:19 JST

Updated on November 25, 2021 09:15 JST

NEW YORK/ISTANBUL -- Turkey's currency clawed back some of its losses Wednesday after falling more than 15% at one point against the dollar the previous day on President Recep Tayyip Erdogan's continued defense of interest rate cuts as a cure for rising inflation.

The currency regained as much as 10% during trading and was up more than 6% as of 11:30 p.m. Turkey time at 12 lira to the dollar, up from a low of 13.35 lira the previous day.