The Turkish lira weakened some 0.2% to beyond 40 against the dollar early on Monday, following news of a widening legal crackdown against the main opposition party over the weekend.
The mayors of the big southern cities of Adana, Adiyaman and Antalya were detained as part of a corruption probe, expanding a months-long legal crackdown that has expanded beyond its origins in Istanbul.
The lira (TRYT0M=D3) touched 40.005 against the dollar but firmed to trade at 39.98 at 0725 GMT, still weaker than its close on Friday.
Istanbul’s benchmark BIST 100 index XU100 was down 1.30% at 0740 GMT, having decreased as much as 1.34% in early trading. The banking index (.XBANK) was down 0.5% at the same time, after an earlier drop of 1.68%.
The currency has weakened some 11% so far this year on concerns over domestic politics and conflicts in neighbouring countries.