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.