ISTANBUL: Turkey's lira fell to a three-week low on Friday as the dollar stayed strong before US jobs data later in the day, hampering sentiment towards riskier assets.
The dollar set a four-year high against a basket of major currencies on Friday, buoyed by the view that the US Federal Reserve is on course to raise interest rates next year in response to a steadily recovering US economy.
Solid gains in US nonfarm payrolls are projected, which would bolster such expectations.
That would be bad news for emerging countries like Turkey, susceptible to changes in global liquidity conditions due to its high current account deficit, its main economic weakness.
The lira dropped to 2.28 against the dollar by 0917 GMT from 2.2535 late on Thursday.
The benchmark 10-year government bond yield rose to 8.88 percent from 8.76 percent. Istanbul's main share index was flat, outpacing the broader emerging markets index, which was down 0.6 percent.
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