Fitch: Watching developments in Turkey closely

In a recently published report, Fitch Ratings said that they were watching the developments in Turkey closely and added that the country's situation worsened since the downgrade that they announced just a month ago, as reported by Reuters.

Key quotes

• Sentiment around Turkey has deteriorated since rating downgrade a month ago.
• Another downgrade of turkey could be triggered by sudden halt of capital inflows, hard landing of economy.

The initial reaction to Fitch's remarks lifted the USD/TRY and the EUR/TRY pairs to fresh record highs of 5.4880 and 6.3674 respectively.