AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

Turkey's lira weakened more than 3 percent on Thursday, giving up a large chunk of the gains it made after the central bank raised interest rates by 300 points a day earlier, as investors bet another hike would be needed to tame the sell-off. The central bank raised its top interest rate to 16.5 percent at an extraordinary meeting on Wednesday in a bid to break a relentless, weeks-long fall in the currency. The lira had depreciated as much as 23 percent so far this year before the bank's move.
The lira was at 4.7891 against the dollar at 1509 GMT, versus its close of 4.5900. It hit a record low of 4.9290 on Wednesday before the rate hike. It is now down some 19 percent year-to-date.
The yield on Turkish 10-year government bonds fell to its lowest since May 15. Dollar bonds rose, and the cost of insuring Turkish debt against default fell to a one-week low.
The central bank on Thursday also increased the maximum total of forward foreign exchange (NDF) sale positions from $6.15 billion to $8 billion for the second quarter. Such a move, providing more dollar liquidity to the market, could theoretically support the lira in the medium-term, but appeared to have little immediate effect.
The currency's dramatic decline reflects investor concerns about the central bank's ability to tame double-digit inflation, particularly after President Tayyip Erdogan - a self-described "enemy of interest rates" - said he expected to assert more policy control after June 24 elections.

Copyright Reuters, 2018

Comments

Comments are closed.