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Economy

Turkish economy cooling as foreign money exits

Lira sinks, bond yields surge on diplomatic, fiscal worries

Turkish consumers have tightened their purse strings.

ISTANBUL -- Turkey's currency and bond prices have plunged amid friction with the U.S. and investor concerns about government finances, dimming the outlook for an economy where foreign capital is vital to growth.

The lira has softened more than 10% against the dollar this year to record low territory in the 3.9 range. A seafood importer here lamented the economic downturn that has accompanied the currency's slide, noting that many businesses have no cash on hand and that trading and manufacturing companies alike are keeping spending to a minimum.

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