Turkish lira firms 1pc, recouping last week's losses

ANKARA: Turkey's lira firmed around 1% on Tuesday to below 8.2 against the dollar, recouping losses over the past week when the currency declined to levels near a record low.

The lira stood at 8.1955 against the dollar at 1226 GMT, firming from a close of 8.2800 on Monday.

The currency had declined on expectations of worsening ties between Ankara and Washington. Further pressuring the lira, Central Bank Governor Sahap Kavcioglu on Friday defended forex reserve sales under a previous administration aimed at providing support for the lira and said further rate hikes could damage the economy.

But it has recovered from Monday's low of 8.4850 as locals sold their forex holdings to benefit off the high exchange rate.