TOKYO -- Asian companies and investors have their eyes fixed on Turkey as the crisis surrounding the country's currency threatens to become a source of global financial turmoil.
The lira dropped by more than 20% over the weekend, and recorded a new low in Asia on Monday of 7.2 lira against the dollar. The decline was triggered by President Tayyip Erdogan's hesitant response to rapidly growing inflation. "As long as I'm alive, we will not fall into the interest-rate trap," said Erdogan, suggesting that he would stop the central bank from hiking interest rates.
