Türkiye's lira weakened to a fresh record low of 18.9620 against the dollar on Thursday.
Presidential and parliamentary elections scheduled for May 14 are adding to uncertainty. They will determine whether Türkiye continues with unorthodox policies under President Tayyip Erdogan or reverts to orthodoxy as promised by the opposition.
Separately, Türkiye's Treasury said on Thursday it had borrowed $2.25 billion in a eurobond issue maturing in 2029, bringing the amount it borrowed from international markets to $5 billion this year.
The yield to investor in the latest issue was 9.50%, down from 9.75% in the eurobond issued in January, the Treasury said, adding that demand was more than triple the amount issued, Reuters reported.
More than a third of the amount issued was sold to investors in the United Kingdom and more than 20% to those in the United States, it said.
The lira lost some 30% of its value against the dollar in 2022 and 44% the year before.
It is likely to hover around 19 to the dollar until the end of the election cycle, largely thanks to forex interventions, but would likely decline further in the long term if Erdogan wins the election, Wells Fargo said in a note.
Türkiye's international bonds also came under pressure with longer-dated issues falling around half a cent in the dollar, according to Tradeweb. ,
