ISTANBUL, Dec 1 (Reuters) - The Turkish lira hit a new low against the dollar on Thursday as worries about the country's political and economic outlook and concerns about the impact of rising oil prices on energy imports weighed on sentiment, traders said.
The main Istanbul share index dropped 2.2 percent while the yield on the 10-year benchmark bond rose to 11.31 percent from 11.13 percent a day earlier.
The lira weakened 10 percent to the dollar in November - its worst month since the 2008 financial crisis - hit by a resurgent U.S. dollar and concern about a widening crackdown after Turkey's failed July coup attempt.
It dropped another 1.5 percent on Thursday to a record 3.4920 as oil swept to a six-week high after OPEC agreed to cut crude output to help clear a glut.
"The lira is being affected negatively by the rise in oil prices as Turkey is a net oil importer," said one forex trader, adding that the market was also preoccupied by the prospect of a referendum on introducing an executive presidency.
Prime Minister Binali Yildirim said his ruling AK Party was planning to present to parliament its constitutional change proposal next week and may hold a referendum on the reform at the start of next summer.
Financial markets are concerned about the political consequences of such a reform and are worried that a fifth national vote in just over three years, following local, presidential and two parliamentary elections, will distract policy makers from badly-needed reforms.
Investors have also expressed concern about the rule of law and the stability of Ankara's institutions as a result of a crackdown since the July 15 putsch, in which rogue soldiers killed more than 240 people.
An economic slowdown is also a source of concern and data on Thursday painted a mixed picture.
The manufacturing Purchasing Managers' Index (PMI) slipped to 48.8 in November from 49.8 in October, according to the Istanbul Chamber of Industry and IHS Markit, pointing to a contraction in activity.
Meanwhile, Turkish exports rose 5 percent year-on-year in November to $11.95 billion and Istanbul retail prices rose 0.59 percent during the month, other data showed.
(Reporting by Behiye Selin Taner; Writing by Daren Butler; Editing by Nick Tattersall) ((daren.butler@thomsonreuters.com; +90-212-350 7122; Reuters Messaging: daren.butler.thomsonreuters.com@reuters.net))
The main Istanbul share index dropped 2.2 percent while the yield on the 10-year benchmark bond rose to 11.31 percent from 11.13 percent a day earlier.
The lira weakened 10 percent to the dollar in November - its worst month since the 2008 financial crisis - hit by a resurgent U.S. dollar and concern about a widening crackdown after Turkey's failed July coup attempt.
It dropped another 1.5 percent on Thursday to a record 3.4920 as oil swept to a six-week high after OPEC agreed to cut crude output to help clear a glut.
"The lira is being affected negatively by the rise in oil prices as Turkey is a net oil importer," said one forex trader, adding that the market was also preoccupied by the prospect of a referendum on introducing an executive presidency.
Prime Minister Binali Yildirim said his ruling AK Party was planning to present to parliament its constitutional change proposal next week and may hold a referendum on the reform at the start of next summer.
Financial markets are concerned about the political consequences of such a reform and are worried that a fifth national vote in just over three years, following local, presidential and two parliamentary elections, will distract policy makers from badly-needed reforms.
Investors have also expressed concern about the rule of law and the stability of Ankara's institutions as a result of a crackdown since the July 15 putsch, in which rogue soldiers killed more than 240 people.
An economic slowdown is also a source of concern and data on Thursday painted a mixed picture.
The manufacturing Purchasing Managers' Index (PMI) slipped to 48.8 in November from 49.8 in October, according to the Istanbul Chamber of Industry and IHS Markit, pointing to a contraction in activity.
Meanwhile, Turkish exports rose 5 percent year-on-year in November to $11.95 billion and Istanbul retail prices rose 0.59 percent during the month, other data showed.
(Reporting by Behiye Selin Taner; Writing by Daren Butler; Editing by Nick Tattersall) ((daren.butler@thomsonreuters.com; +90-212-350 7122; Reuters Messaging: daren.butler.thomsonreuters.com@reuters.net))
