Turkish lira hits weakest level since 2018 currency crisis due to coronavirus (updated)

Vakko Tekstil ve Hazir Giyim Sanayi Isletmeleri

19/03/2020 07:22

(Adds economist comments, Ford Otosan, background)
    ISTANBUL, March 19 (Reuters) - Turkey's lira weakened more
than 0.8% on Thursday to its weakest level since September 2018
as the spread of the coronavirus weighed on sentiment and the
U.S. currency surged globally.
     The lira  TRYTOM=D3  stood at 6.5370 against the dollar at
1055 GMT, its lowest level since the heights of a currency
crisis two years ago. 
    The currency closed at 6.4825 on Wednesday and has lost some
8.5% of its value against the U.S. dollar so far his year.
    Jason Tuvey, senior emerging markets economist at Capital
Economics, said the lira had held up relatively well amid the
selloff in emerging market currencies.
    He said President Tayyip Erdogan's call for Turks to stay
home for at least three weeks would lead to severe disruptions
of economic activity.
    "This... comes at the same time that a downturn in the
global economy will hit export-oriented sectors and travel
restrictions will lead to a slump in the tourism industry.
    "The overall result is that the Turkish economy looks set to
contract sharply in Q2," he said.
    Turkey announced a second death from coronavirus on
Wednesday and said cases of the illness had nearly doubled to
191 as it ramps up steps to contain its spread, closing cafes,
banning mass prayers and halting flights to 20 countries.
    Some clothing retailers, including Mavi Giyim and Vakko
Tekstil, said they were temporarily shutting stores after
President Tayyip Erdogan advised Turks not to leave home for
three weeks unless necessary.  urn:newsml:reuters.com:*:nL8N2BB74P  urn:newsml:reuters.com:*:nL8N2BC0NQ 
    The main share index  .XU100  was up 0.2%, while the banking
index  .XBANK  fell 0.3%. Shares of Mavi Giyim  MAVI.IS  and
Vakko Tekstil  VAKKO.IS  were down 6.71% and 6.01% respectively.
    Commercial vehicle producer Ford Otosan's shares  FROTO.IS 
dropped 8.47% on Thursday, after it said it would suspend
production for two weeks at three plants.  urn:newsml:reuters.com:*:nFWN2BB1F3

 (Reporting by Daren Butler, Ezgi Erkoyun and Ali Kucukgocmen
Editing by Dominic Evans and Mark Heinrich)
 ((daren.butler@tr.com; +90-212-350 7053; Reuters Messaging:
daren.butler.thomsonreuters.com@reuters.net))