Turkey's lira firmed more than one percent on Tuesday as it continued to recover some of this year's steep losses on the back of easing concerns over the central bank's independence and strained ties between Ankara and Washington. The lira, which slumped in August and at one stage was down 47 percent since the start of the year - has recovered some of those steep losses.
The Central Bank's 6.25 percentage point rate hike in September eased concerns over its ability to adequately respond to the rise in inflation and the release of US pastor Andrew Brunson from house arrest in Turkey two weeks ago signaled an improvement in ties with Washington.
The currency extended its rally on Tuesday, firming more than one percent to 5.4893 by 1510 GMT, compared to Monday's close of 5.5625. It reached 5.4650 earlier in the day, its strongest in more than 2-1/2 months but still down nearly 30 percent against the dollar this year.
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