Turkish officials scrambled to limit market fallout after a judicial decision against the opposition sent the lira lower and bond yields higher.
Turkey's lira weakened as investors reacted to heightened political risk after a court ruling against the opposition. The government's pledge to calm markets failed to immediately stabilize the currency.
The ruling increases political risk, undermining investor confidence and triggering capital outflows that pressure the lira.
The central bank may hike interest rates or intervene directly in forex markets to support the currency.
Turkey's government moved to reassure markets on Friday after a court ruling against the opposition sparked selling pressure. The lira weakened and bond yields rose amid political uncertainty. Authorities pledged policy measures to stabilize financial conditions.
A court ruling dealt a blow to the opposition, prompting the government to take steps to calm financial markets.
The ruling raises political risk, potentially leading to capital outflows and volatility in Turkish assets.