ISTANBUL: The beleaguered Turkish lira recovered from all-time lows on Tuesday amid expectations that a crisis meeting of the central bank will raise interest rates at midnight.
The lira recovered to 2.2629 on Tuesday, after hitting a record low of 2.3331 to the dollar and 3.1950 to the euro on Monday.
The main Istanbul stock index also gained by 1.26 percent to 65,382.07 points.
The currency, which has fallen to new low levels almost daily this year, has been under pressure not only from a corruption scandal rocking the government but also from an expected tightening of US monetary policy which is sucking funds from emerging markets.
The central bank, which failed to arrest the fall of the lira with heavy intervention in the foreign exchange markets last week, announced on Monday an emergency meeting for Tuesday to "take precautions which are necessary for price stability."
The bank is expected to raise its overnight lending rate to at least 9.0 percent, despite the government's opposition to such a move on grounds that it could jeopardise growth.
Comments
Comments are closed for this article.