ISTANBUL: The Turkish lira eased on Friday after data showed the country's huge trade deficit widened further in October, while stocks gained ground in line with rising global equities.
The lira fell to 2.0215 by 1552 GMT from 2.0146 late on Thursday. The trade shortfall widened to $7.375 billion in October from $5.596 billion in the same period a year earlier, data showed on Friday, in line with forecasts in a Reuters poll.
A large deficit fuels fears that the lira will prove more vulnerable than most other emerging currencies to a cut in US monetary stimulus.
Turkey is dependent on volatile foreign capital inflows to finance its deficit, largely the result of it having to import almost all of its oil.
So the prospect of the US Federal Reserve starting to withdraw some of the cheap dollars coursing through the global economy leaves it at risk of capital outflows.
"The October trade deficit signals that the deterioration in Turkey's external balance continues and this would limit appreciation moves in the lira," said Ali Cakiroglu, a strategist at HSBC Asset Management.
But thin volumes meant the lira's downside was limited, bankers said.
Istanbul's main stock index rose 1.57 percent to 75,748.27 points in a technical rebound after it lost 2.9 percent over the previous three days. It outperformed the emerging market index, which rose 0.55 percent.
The yield on Turkey's 10-year benchmark bond was almost unchanged at 9.41 percent from 9.38 percent at Thursday's close.
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