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Turkish lira hits record low as coalition talks fail

Xinhua, August 18, 2015 Adjust font size:

The Turkish lira has hit record low against the U.S. dollar on Monday following the end of coalition talks between the country's Justice and Development Party's (AKP) and the Nationalist Movement Party (MHP) with no consensus.

The Turkish currency fell to a historic low of 2.8700 against the dollar on Monday, according to the rate given by local Anadolu Agency.

Starting the day at 2.8350, the Turkish lira hit 2.86 in afternoon trading before party leaders met at 2.00 p.m. (1100 GMT) then to 2.87 against the U.S. currency following the meeting.

Turkish Prime Minister Ahmet Davutoglu announced on Monday that his AKP's negotiations with the MHP ended without agreement to form a coalition government.

The meeting follows talks between Davutoglu's AKP and the second-ranked Republican People's Party (CHP) which ended without an agreement on Thursday.

Analysts say the growing prospect of an early election will further decrease the value of the Turkish lira against the dollar in the coming days.

The Turkish Central Bank monetary policy committee will meet Tuesday to decide whether to raise or lower interest rates.

However, economists foresee that the Turkish Central Bank will keep interest rates as they are. Endite