Turkey's Lira scored a new record low against the dollar on Monday morning as markets opened. The lira fell to 9.80 against the dollar before recovering slightly to 9.73 at 5:00 GMT, marking a 1.3% decrease.

This drop was caused by President Recep Tayyip Erdogan's threat to expel 10 Western diplomats that called for the release of businessman and activist Osman Kavala.

Kavala has been in prison since 2017 without a conviction, and is facing a number of charges over his role in the 2013 Gezi protests and the failed coup d'etat of 2016.

In a joint statement on October 18, Canada, Denmark, Finland, France, Germany, the Netherlands, New Zealand, Norway, Sweden, and the US said that delays in Kavala's case "cast a shadow" over Turkey's democracy and the judicial system.

The statement sparked the anger of the Turkish President, who ordered the foreign minister to “declare these 10 ambassadors as persona non grata as soon as possible," the final step before actual expulsion.

A cabinet meeting is set to take place at 12 GMT in Ankara, where the decision of whether or not to expel them will be taken.

Bluebay Asset Management Analyst Timothy Ash said the expulsion of the 10 diplomats may harm Erdogan, adding that these 10 countries will limit their trade with Turkey, which will therefore harm investments.

The Turkish Lira has had a full week, losing 24% of its value to the dollar since the beginning of the year.