Investors are betting political turmoil will weaken Turkey’s lira more than any other currency as the arrest of more than 40 army officers over an alleged coup plot raises tension between the government and the military. Turkey’s stocks, bonds and currency slumped this week as the detention of serving and retired officers reignited clashes between the government and an army that has ousted four governments since 1960. The selloff reversed a trend in which its stocks and bonds outperformed every European market during the height of the global credit crisis.

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