Turkish lira at firmest in two weeks against dollar

by

ISTANBUL – Turkey’s lira on Tuesday touched its firmest level against the U.S. dollar in almost two weeks after investor concerns over a possible looser monetary policy eased.

The lira stood at 8.39 against the dollar at 1041 GMT, firming from a close of 8.4550 on Monday.

Last week, Turkey’s central bank held its key interest rate steady at 19%, as expected, repeating a pledge for tight policy in face of high inflation.

Despite gains since last week, the currency has still lost more than 11% so far this year.

The independence of the central bank has been a main concern for investors in recent years, given that President Tayyip Erdogan publicly calls for lower rates. The wording of the statement following last Thursday’s rate-setting meeting did not point to a premature cut, economists said.

The fall in oil prices, recovering tourism revenues were also contributing to the lira’s path, traders said.

Reuters

You may also like

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: