The Turkish lira continues to tumble as markets weight two factors, rising inflation and Turkey’s increasingly aggressive foreign policies.

The lira is at an all-time low against the US dollar and the central bank has refused to raise interest rates to stabilise the currency.

President Erdogan has not only pushed his luck in the Mediterranean by claiming oil drilling rights in disputed zones, but embroiled the country in foreign wars in Libya, Syria and in the Caucasus. If that were not enough, last week he rushed to support Muslims in France, who he said were being treated like Jews in Central Europe before the Second World War.

Adding insult to injury, he said that President Macron should see a psychiatrist, a comment that led to France recalling its ambassador.

The lira has lost 26 percent of its value this year.