The opposition Republican People’s Party (CHP) delivered a devastating result to President Erdogan by securing 54 percent of votes, a far wider victory margin than their win three months ago. The lira rallied to 5.7146 overnight after the outcome emerged. Gains in the currency cooled slightly by 10.27am BST, when the lira stood at 5.7571 against the American greenback. The decision to re-run the mayoral election was made after the previous result was annulled following protests from President Erdogan’s AK Party.
The AK Party had claimed there had been widespread voting irregularities and said the initial result was too close to claim a secured victory.
Winning CHP candidate Ekrem Imamoglu triumphed by almost 800,000 votes.
He said: “In this city today, you have fixed democracy. Thank you Istanbul.
“We came to embrace everyone. We will build democracy in this city, we will build justice.
“In this beautiful city, I promise, we will build the future.”
The High Electoral Board has yet to announce the formal results, but President Erdogan has already congratulated Mr Imamoglu for his victory.
His AK Party rival Binali Yildirim wished him luck as mayor barely two hours after polls closed.
President Erdogan, who has ruled Turkey since 2003, first as prime minister and then as president, has seen support erode in recent months after the country was thrust into a financial crisis, sparking an economic recession.
The loss of Istanbul is a huge one for President Erdogan, who launched his political career in Istanbul as mayor in the 1990s.
His AK Party held power in Turkey’s commercial hub for 25 years up until the latest election.
The lira lost nearly 30 percent against the US dollar last year off the back of concerns surrounding the central bank’s ability to curb inflation following calls from President Erdogan for lower borrowing costs.
That sell-off, which tipped the economy into recession in the fourth quarter, was exacerbated by strained ties between Ankara and Washington over the trial of a US evangelical pastor in Turkey.