Lira drops to record after Erdogan's threat against envoys

Turkey’s lira fell to a record as the country’s latest diplomatic spat with the U.S. and other foreign governments gave traders another reason to sell the struggling currency.

The lira weakened as much as 2.5% in early Asian trading amid thin liquidity on Monday, touching a new low for a third day. It was 1.5% weaker at 9.7509 per dollar at 10:48 am. in Istanbul.

Already under pressure following a larger-than-expected rate cut last week, the currency encountered fresh selling after President Recep Tayyip Erdogan said on Saturday that the ambassadors of 10 nations were no longer welcome after they demanded the