Turkey’s lira hit its weakest in a month on Tuesday, as investors worried about Ankara’s planned incursion in northern Syria and President Donald Trump warned he could destroy the Turkish economy if it takes the operation too far.  

While some analysts call President Erdogan’s pre-election market meddling as a failure which backfired, it may be a bit too early to judge. Short-term it appears as if it was unsuccessful, but traders need to keep in mind that any transition requires time and is associated with short-term pain. Even without government market interference, Turkey has been faced with a few disruptive developments and the economy should be given time to heal and shouldn’t be judged by the exodus of foreign capital which so far in 2019 stands at $1.8 billion. This marked the largest outflow since 2015.

A lot of forex analysts and traders are now wondering if the collapse in the Turkish Lira is over, or if another round of selling is around the corner. The Turkish currency has been losing value against the US Dollar and the Euro for since August of 2017. The reason was the economic policy which Turkey embraced.