The Turkish lira slumps 1.1% against the U.S. dollar as President Tayyip Erdogan questions the validity of Istanbul's mayoral election, saying "almost all" of the vote was irregular.
"The Turkish lira is the weakest link due to rising market concerns that political tension may increase in the coming days/weeks," writes Rabobank emerging markets FX strategist Piort Matys.
The lira's decline may not be over. "Speculators are also able to bet against the vulnerable Turkish currency without severe restrictions imposed ahead of the crucial local elections on March 31," Matys wrote.
He also noted that the country's central bank resumed weekly repo auctions on Monday and cut FX swaps to 24% from 25.5%.
The lira has weakened 28% against the greenback in the past year.
Previously: Lira slides as Erdogan loses Ankara (April 1)
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