“Uncertainty regarding geopolitical impacts is a great concern for emerging-market currencies generally, in particular those which are in the region,” Nguyen added.

Meanwhile, Fitch Ratings argued that Erdogan’s win could fuel political risk in Turkey, which could also lead to a negative rating action. Erdogan is required by Turkish law to sever ties with his party as he takes the presidential mantle.

iShares MSCI Turkey ETF

For more information on Turkey, visit our Turkey category.

Max Chen contributed to this article.