The Turkish Lira has rallied over one percent today after the victory of the country’s opposition in the re-run of the Istanbul mayoral election.
The currency was trading near 1.6% higher at 5.73 against the US dollar after the announcement that Ekrem Imamoglu had won the race to be Istanbuls mayor once more.
This rally shows that investors feel that the growing support for the opposition party is good news for the Turkish economy with Erdogan previously stating that if his party loses the Istanbul majority then it will lose Turkey.
With surging inflation the Turkish economy has struggled over the last year and Erdogan has repeatedly called for lower interest rates but this goes against the generally accepted theory amongst the country’s central bankers.
However the result in the mayoral elections does increase political uncertainty in the country and this could eventually see the Lira weaken once more.
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