ISTANBUL: The Turkish lira slipped on Tuesday as oil prices made up some of the ground lost the previous day after world powers reached a deal with Iran to curb its nuclear programme.
Investors were also waiting for the 1200 GMT release of the minutes of the central bank's latest policy meeting, where it kept rates on hold but signalled more tightening by cancelling its one-month repo auctions to tame inflation.
Turkey needs substantial inflows of foreign capital to finance its large current account deficit, which is partly due to its reliance on oil imports.
The possibility of a cut in U.S. Fed stimulus, which would dry up the cheap foreign capital inflows that finance the country's deficit is keeping investors on edge.
The lira eased to 2.0055 by 0858 GMT on Tuesday from 2.0037 late on Monday. It had firmed to less than 2 to the dollar on Monday morning as oil prices fell in the wake of the Iran deal.
The central bank will implement additional monetary tightening on Thursday, meaning it will sell a minimum $100 million in a forex auction.
Analysts said the next major focus of attention on the data front was November inflation, due on Dec. 3, which could determine the direction of monetary policy and markets.
The yield on Turkey's 10-year benchmark bond fell to 9.15 percent from 9.18 percent at Monday's close.
Istanbul's main stock index fell 0.2 percent to 76,379 points, narrowly underperforming the emerging market index, which fell 0.1 percent.
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