USD/TRY reaches fresh record high

The Turkish lira weakened further and reached fresh post-coup attempt lows against the dollar after S&P downgraded Turkey rating to BB from BB+ with outlook negative.

According to S&P, the  downgrade reflects the view that following the failed coup, Turkey’s political landscape has fragmented further and that this will undermine Turkey’s investment environment, growth, and capital inflows into its externally leveraged economy.

USD/TRY broke decisively above 3.050 (Friday’s peak), and through September 2015 high of 3.074, rallying to a fresh all-time high of 3.096. At time of writing, the pair is trading at 3.090, up 1.58% on the day.