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Turkish lira hits another historic low amid pandemic

  • A man sits outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
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    Turkey Currency

    A man sits outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
  • People walk inside historical Covered Bazar, one of homes of exchange offices in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
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    Turkey Currency

    People walk inside historical Covered Bazar, one of homes of exchange offices in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
  • A man stands outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
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    Turkey Currency

    A man stands outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
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    Keep up to speed at a glance with the Top 10 daily stories

  • A man walks past a gold shop in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
    4/8

    Turkey Currency

    A man walks past a gold shop in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
  • People walk past an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
    5/8

    Turkey Currency

    People walk past an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
  • FILE-In this Friday, Aug. 17, 2018 file photo, an oversized copy of a 200 Turkish lira banknote, featuring a photo of modern Turkey's founder Mustafa Kemal Ataturk decorates a currency exchange shop in Istanbul. Turkey's currency dropped to an all-time low against the dollar on Thursday Aug. 6, 2020, as the global recession created by the coronavirus pandemic brings to the fore weaknesses in the country's economy.(AP Photo/Lefteris Pitarakis, File)
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    Turkey Currency

    FILE-In this Friday, Aug. 17, 2018 file photo, an oversized copy of a 200 Turkish lira banknote, featuring a photo of modern Turkey's founder Mustafa Kemal Ataturk decorates a currency exchange shop in Istanbul. Turkey's currency dropped to an all-time low against the dollar on Thursday Aug. 6, 2020, as the global recession created by the coronavirus pandemic brings to the fore weaknesses in the country's economy.(AP Photo/Lefteris Pitarakis, File)
  • Keep up to speed at a glance with the Top 10 daily stories

    Yahoo News is better in the app

    Keep up to speed at a glance with the Top 10 daily stories

  • People stand outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
    7/8

    Turkey Currency

    People stand outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
  • A currency exchange shop employee shows 100 Euros, 100 U.S. dollars and 100 Turkish Liras banknotes at his shop at a market street in Istanbul, Thursday, July 30, 2020. The Turkish Lira continued its trend down against the U.S. dollar Thursday but was still above a historic low in May. (AP Photo/Omer Kuscu)
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    Turkey Economy

    A currency exchange shop employee shows 100 Euros, 100 U.S. dollars and 100 Turkish Liras banknotes at his shop at a market street in Istanbul, Thursday, July 30, 2020. The Turkish Lira continued its trend down against the U.S. dollar Thursday but was still above a historic low in May. (AP Photo/Omer Kuscu)
A man sits outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
People walk inside historical Covered Bazar, one of homes of exchange offices in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
A man stands outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
A man walks past a gold shop in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
People walk past an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
FILE-In this Friday, Aug. 17, 2018 file photo, an oversized copy of a 200 Turkish lira banknote, featuring a photo of modern Turkey's founder Mustafa Kemal Ataturk decorates a currency exchange shop in Istanbul. Turkey's currency dropped to an all-time low against the dollar on Thursday Aug. 6, 2020, as the global recession created by the coronavirus pandemic brings to the fore weaknesses in the country's economy.(AP Photo/Lefteris Pitarakis, File)
People stand outside an exchange office in Istanbul, Friday, Aug. 7, 2020. Turkey's currency tumbled further Friday, hitting another record low. The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. (AP Photo/Emrah Gurel)
A currency exchange shop employee shows 100 Euros, 100 U.S. dollars and 100 Turkish Liras banknotes at his shop at a market street in Istanbul, Thursday, July 30, 2020. The Turkish Lira continued its trend down against the U.S. dollar Thursday but was still above a historic low in May. (AP Photo/Omer Kuscu)
Associated Press
Updated ·1-min read

LONDON (AP) — Turkey's currency tumbled further Friday, hitting another record low.

The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. It was trading around 7.17 on Friday afternoon.

The drop is fueled by high inflation, a wide current account deficit and the Turkish government’s push for cheap credit to drive an economy that was already fragile before the COVID-19 pandemic hit.

Analysts have expressed concerns over the level of Turkey's reserves and Turkish President Recep Tayyip Erdogan’s aversion to high interest rates.

Turkey had been hoping for an influx of foreign currency through exports and tourism revenues, but the pandemic has sharply undermined the tourism industry and disrupted global commerce.

Speaking after Friday prayers at the recently reconverted Hagia Sophia mosque in Istanbul, Erdogan said “there are serious zigzags in the global economy after the pandemic.”

He added: “I believe the Turkish lira will fall into place ... these are temporary fluctuations."