The Turkish lira dove in value on Friday against the world's reserve currency, marking its biggest losses in roughly 21 days after Moody's Investors Service cut the nation's credit rating, according to Bloomberg.
The credit rating service slashed the rating from stable to negative after having pushed up the level less than one year ago. Moody's pointed to damages that investor confidence has endured due to pressures with external financing.
"Given the financial turbulences that Turkey experienced in recent months as well as the apparent risks on the economic outlook, the Moody's decision is not surprising," states a research note authored by analysts with Finansbank, according to Reuters. "Furthermore, a downgrade seems also possible if the conditions leading to this decision exacerbate in the future."
The lira fell roughly 0.5 percent after having gained about 3.5 percent against the U.S. dollar since Prime Minister Recep Tayyip Erdogan won local elections in late March.
The country is struggling with political unrest amid corruption allegations against the prime minister and his administration, according to Reuters. That marks the prime minister's most marked concern in the past 12 years of serving as leader.
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