Selloff of the Century Unending for Turkey as Goldman Cuts Lira

The lira fell as low as 3.0695 on Monday, extending a record and heading for the worst performance among 24 emerging- market currencies tracked by Bloomberg. After eight weeks of declines, a streak unmatched since 1999, Goldman Sachs Group Inc. and Toronto Dominion Bank predict a further slide against the dollar stretching through next year. They’re not alone. Sellers of the currency outweighed buyers by the most since 2000 on Friday, according to data compiled by Bloomberg.

Turkey’s currency plunge and soaring bond yields, topped only by recession-hit Brazil among emerging markets this year, show the deterioration of confidence in a country grappling with worsening security risks, a second election in six months and an economic slowdown that’s narrowing the central bank’s scope to raise interest rates.