ISTANBUL: The lira rebounded from an earlier slump to rally 1.5% on Friday, benefiting along with other emerging market currencies after Russian President Vladimir Putin said he sees “positive shifts” in talks with Ukraine.

The lira has suffered since Russia invaded Ukraine given the economic fallout from sanctions on Moscow are expected to spark higher inflation and a wider current account deficit in Turkey.

The currency rallied 1.5% on Friday afternoon, touching 14.65 against the dollar by 1413 GMT, after having earlier weakened 0.8% to just shy of 15. It has declined in the last eight straight sessions. The rally came after Putin said some progress had been made in Moscow’s talks with Ukraine. “There are certain positive shifts, negotiators on our side tell me. I will talk about all of this later,” he said. The lira is still down 10% this year and is nearly at half its value compared to a year ago, having shed 44% in 2021. Western sanctions on Russia sent energy prices soaring, ratchetting up Turkey’s already hefty import bill.