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Turkish lira weakens after Erdogan's victory

MADRID, 29 May.

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Turkish lira weakens after Erdogan's victory

MADRID, 29 May. (EUROPA PRESS) -

The value of the Turkish lira against the main currencies weakened after the President of Turkey, Recep Tayyip Erdogan, revalidated his mandate in the country on Sunday after winning the second round of the presidential elections.

In this way, the dollar strengthened its cross against the Ottoman currency above 20 Turkish liras and very close to all-time highs, trading on Monday at 20.0559 liras, compared to 19.9727 liras at the close of the past Friday.

Likewise, the euro also saw its price boost and was exchanged for 21.6394 liras, when last Friday it had closed at 21.3739 liras.

"An Erdogan victory offers no consolation for any foreign investor," says Hasnain Malik, a strategist at Tellimer, in statements collected by Bloomberg. "With very high inflation, very low interest rates and no net foreign reserves, a painful crisis affecting all assets could be on the way," he adds.

Erdogan achieved victory this Sunday in the closest presidential elections since he first took office in 2014 and after two editions in which he had achieved direct victory by collecting more than 50% of the votes in the first round.