The Turkish lira closed nearly flat against the dollar on Friday, as it surrendered some of its early gains and shares closed down 0.61 percent following deterioration on external markets due to doubts about the EU bailout fund. Greek Prime Minister George Papandreou faces a vote of confidence Friday night, with the fate of both the nation's deal on a eurozone debt bailout and the global economy in the balance.
The lira closed at 1.7535 versus the dollar on the interbank market compared with a previous close of 1.7595. In early trade, the currency firmed below 1.75 against the dollar as risk appetite rose a tad on hopes Greece will abandon a planned referendum on a bailout deal.
Rising household demand for lira ahead of the holiday period also supported the currency in morning trade, analysts said. However, the lira surrendered some of its early gains in after-hours trade and stood at 1.7666 versus the greenback by 1600 GMT as jitters about the Greece problems resurfaced. Against its euro-dollar basket the lira traded at 2.0973, weakening from a previous close of 2.0750.
The main Turkish share index closed down 0.61 percent at 56,180.24 points, largely underperforming the emerging market index which was up 1.52 percent. The yield on the benchmark July 17, 2013 bond closed at 9.96 percent from a previous 9.91 percent.