Turkey's Banking Regulation and Supervision Agency launched a probe into JPMorgan Chase & Co. and a separate investigation into other unnamed banks, saying the lenders drove a sharp fall in the lira, its biggest since the country's currency crisis in 2018, Bloomberg News reported.
The regulator, known as BDDK, said a research note published by two JPMorgan analysts that urged clients to sell the lira against the U.S. dollar contained "misguiding and manipulative" information that hit the reputation of Turkish banks and caused volatility in markets, according to the report.
The currency was more than 5% weaker against the dollar at the end of March 22, Bloomberg noted.
The JPMorgan note reportedly said the lira could drop following the March 31 local elections and cited a recent fall in Turkey's net foreign reserves for its recommendation to sell.
Turkey's Capital Markets Board also launched its own probe on similar grounds, BDDK reportedly said. The banking regulator added that it will look into other unnamed banks that allegedly manipulated their clients into buying foreign currencies.