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Why Turkey’s currency is plunging and what it means

BostonGlobe.com
Why Turkey’s currency is plunging and what it means

ISTANBUL (AP) — The tumble in Turkey’s currency on Friday signaled deepening pessimism about the country’s economy after months of market declines. The lira fell as low as 6.75 to the dollar, down a whopping 14 percent on the day and 41 percent since the start of the year as investors worry about the country’s economic policies and a dispute with the United States that has led to sanctions and new tariffs. Here is a look at the situation — what caused the plunge and what impact it might have. Q: Why is Turkey’s currency so weak? A: Turkey’s economy has grown strongly in recent years, but that has required a lot of foreign investment and the country imports more than it exports. Together, that