LONDON: Turkey's lira held near a two-month low, its sovereign dollar bonds tumbled and the cost of insuring exposure to the country's debt spiked as the presidential election appeared headed for a runoff with incumbent president Tayyip Erdogan in the lead.
The lira was at 19.65 to the dollar at 0655 GMT, after reaching 19.70 in earlier trading, its weakest since a record low of 19.80 hit in March this year following deadly earthquakes.
It was on track for its worst trading session since early November . On the Istanbul bourse, a 6.38% drop triggered a market-wide circuit breaker.
Parties of both Erdogan and opposition rival Kemal Kilicdaroglu were claiming the lead after Sunday's presidential and parliamentary election, but sources in both camps admitted they may not clear the 50% threshold to win outright.
"This is a major disappointment to investors hoping for a win for opposition candidate Kilicdaroglu and the reversion to orthodox economic policy he promised," said Hasnain Malik, head of equity research at Tellimer.
In the parliamentary vote, the People's Alliance including Erdogan's AKP was headed for a majority, meaning that even if Kilicdaroglu won a runoff, he would lead a split government.
Dollar-denominated sovereign bonds issued by Turkey fell sharply by more than 5 cents, while the five-year Turkey credit default swap spread jumped 105 basis points (bps) to 597 bps, according to S&P Global Market Intelligence, the highest since November 2022.
The presidential vote will decide not only who leads Turkey and shapes the foreign policy of the NATO-member country of 85 million people, but also how it is governed and how it tackles a deep cost-of-living crisis.
Last week, Turkish stocks and bonds rallied when third-party presidential candidate Muharrem Ince withdrew from the race, boosting expectations of a Kilicdaroglu win.
Analysts expect the lira to slump in the wake of the elections following years of economic imbalance and unorthodox monetary policy.
JPMorgan (JPM.N) forecast the lira could soften to levels of 24-25 to the dollar. Goldman Sachs said in a note in recent days that its calculations showed the market was pricing the lira to weaken by 50% in the next twelve months.
The lira has weakened 5% since the start of the year, and has lost almost 95% of its value over the last decade and a half as sugar-rush economic policies sparked spectacular boom and bust cycles, rampant inflation and currency market turmoil.
A potential second election round is scheduled for May 28.
Reuters
Mon May 15 2023
![Turkey's lira slides, dollar bonds tumble as presidential runoff looms Turkey's lira slides, dollar bonds tumble as presidential runoff looms](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-05/61684135479_XXQKRWPCNFMWXNCRGEM.jpg)
=Woman holds Turkish Lira banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/
![ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61721116604_ChongZheminDewan.jpg)
ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar
Tindakan tersebut seolah-olah satu penghinaan paling besar kepada Parlimen yang telah meluluskan pindaan Perlembagaan Persekutuan berkait Akta Antilompat Parti.
![Kes bunuh Nur Farah Kartini: Suspek berkhidmat 5 tahun dalam PDRM Kes bunuh Nur Farah Kartini: Suspek berkhidmat 5 tahun dalam PDRM](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81721102947_suspekbunuhNurFar.jpg)
Kes bunuh Nur Farah Kartini: Suspek berkhidmat 5 tahun dalam PDRM
Anggota berusia 26 tahun terbabit bertugas di Balai Polis Slim River di bawah Ibu Pejabat Polis Daerah (IPD) Muallim dengan pangkat lans koperal.
![Perunding pelaburan didakwa terlibat pengubahan wang haram hampir RM1 juta Perunding pelaburan didakwa terlibat pengubahan wang haram hampir RM1 juta](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721117052_SaifulNizamSaharud.jpg)
Perunding pelaburan didakwa terlibat pengubahan wang haram hampir RM1 juta
Seorang perunding pelaburan mengaku tidak bersalah atas empat pertuduhan pengubahan wang haram berjumlah hampir RM1 juta.
Purata suhu meningkat 0.24 darjah celcius per dekad
Berdasarkan rekod dari tahun 1969 hingga 2019, purata suhu bulanan di Semenanjung Malaysia pada bulan Mei 2024 adalah 28.8 darjah celcius manakala purata suhu bulanan pada bulan Mei 1974 iaitu 50 tahun yang lalu adalah 26.6 darjah celcius.
ADUN dari kerajaan perpaduan sertai Pas
Menurut Takiyuddin, keahlian Muhamad Jailani yang juga wakil rakyat UMNO diterima pada 10 Jun tahun lalu, namun diumumkan secara rasmi hari ini.
![Kerajaan lihat semula perjanjian penjualan air kepada Singapura - Fadillah Kerajaan lihat semula perjanjian penjualan air kepada Singapura - Fadillah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81720085306_FadillahYusof.jpg)
Kerajaan lihat semula perjanjian penjualan air kepada Singapura - Fadillah
Fadillah berkata perkara itu sudah berlaku ketika zaman pentadbiran bekas Perdana Menteri Tun Dr Mahathir Mohamad lagi.
![Pelancong asing ditahan disyaki cabul pekerja spa di Pulau Perhentian Pelancong asing ditahan disyaki cabul pekerja spa di Pulau Perhentian](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-07/51658407048_Cabul.jpg)
Pelancong asing ditahan disyaki cabul pekerja spa di Pulau Perhentian
Polis menahan seorang pelancong lelaki warga Maghribi kerana disyaki mencabul seorang juruterapi wanita rakyat tempatan di Pulau Perhentian.
Warga Thailand seludup diesel dihadapkan mahkamah
Seorang pemandu lori warga Thailand dihadapkan ke mahkamah atas menyeleweng 322 liter minyak diesel minggu lalu.
ADUN Rembia sertai Pas: YB Kampar minta buka riben putih
Susulan pengumuman ADUN Rembia sertai Pas dalam sidang media, YB Kampar, Chong Zhemin kemuka Peraturan Mesyuarat dan menyifatkan satu penghinaan besar buat Parlimen.
#SisiTVParlimen
#AWANInews
#SisiTVParlimen
#AWANInews
![Malaysia, Brunei dalam proses rundingan muktamad sempadan darat negara - Mohamad Malaysia, Brunei dalam proses rundingan muktamad sempadan darat negara - Mohamad](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41720590984_DatukSeriMohamadH.jpg)
Malaysia, Brunei dalam proses rundingan muktamad sempadan darat negara - Mohamad
Mohamad Hasan berkata buat masa ini, kerja-kerja penandaan dan pengukuran di lapangan telah meliputi 175.96 km atau 33.3 peratus daripada keseluruhan jarak sempadan.
![Rohingya perlu dilayan sebagai rakyat atau diberi wilayah sendiri - Dr Mahathir Rohingya perlu dilayan sebagai rakyat atau diberi wilayah sendiri - Dr Mahathir](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2019-07/71564232755_TBtunM.jpg)
Rohingya perlu dilayan sebagai rakyat atau diberi wilayah sendiri - Dr Mahathir
Etnik Rohingya seharusnya dilayan sebagai rakyat Myanmar atau diberikan wilayah sendiri untuk membentuk negeri, kata Perdana Menteri Tun Dr Mahathir Mohamad.
![ISG bakal kendali 65 juta penumpang menjelang 2022 ISG bakal kendali 65 juta penumpang menjelang 2022](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2017-11/81511843784_SabihaGokcen.jpg)
ISG bakal kendali 65 juta penumpang menjelang 2022
Pembangunan infrastruktur di Lapangan Terbang Antarabangsa Sabiha Gokcen (ISG) mampu meningkatkan kapasiti sehingga 65 juta penumpang menjelang tahun 2022.
![Mereka pengkhianat Turki - Pemimpin Mereka pengkhianat Turki - Pemimpin](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2017-07/51500126584_RecepTayyipErdogan.jpg)
Mereka pengkhianat Turki - Pemimpin
Setahun selepas cubaan rampasan kuasa gagal, kalangan pemimpin Turki terus mengecam apa yang mereka disifatkan sebagai pengkhianat negara.
![Serangan di Istanbul: Apa yang diketahui setakat ini Serangan di Istanbul: Apa yang diketahui setakat ini](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2016-01/81452592300_IstanbulTurkeybl.jpg)
Serangan di Istanbul: Apa yang diketahui setakat ini
Satu letupan menggegarkan pusat bersejarah Sultanahmet, Istanbul yang menjadi destinasi popular pelancong. Berikut adalah apa yang diketahui setakat ini.