Turkish Lira Tumbles After Erdogan Defends Rate Cuts

Turkey’s economic crisis entered a tumultuous new phase, with its currency plunging to a fresh record low and President Recep Tayyip Erdogan preparing to meet the leader of a regional rival in search of foreign investment.

The lira slid as much as 18% Tuesday, before easing slightly, threatening to further shake the economy by undermining confidence, making it harder for businesses to pay off foreign-currency debt and increasing the cost of imported goods, especially oil. That would push the inflation rate, currently at around 20%, even higher, further hurting households, analysts say.