Turkish lira plunges as Erdoğan claims mandate to continue divisive rule

Recep Tayyip Erdoğan struck a hawkish tone in his victory speech, saying ‘it is not difficult for us to resolve’ the country’s economic problems. Photograph: Ali Unal/AP

The Turkish lira has hit a record low after the election win of the president, Recep Tayyip Erdoğan, in a renewed sign of the economic troubles his country is expected to face in the third decade of his rule.

The lira fell against the dollar as Erdoğan pronounced victory. On Monday morning, the US investment bank Morgan Stanley predicted the Turkish currency would drop further this year, reaching 26 or even 28 to the dollar more quickly than previously anticipated.