Turkey's lira strengthened 2 percent on Thursday, touching its firmest level in a month, on growing optimism about a rapprochement with the United States and after local lender Akbank said it had secured a critical syndicated loan. The lira's rare advance - it is on track for its first positive monthly performance since January - comes in a torrid year that has seen it lose nearly 40 percent of its value, hit by concerns about President Tayyip Erdogan's control over monetary policy and the rift with Washington.
The sell-off has underscored the fragility of the economy, which economists have long said is too reliant on foreign debt. Banks are seen as particularly vulnerable, because of both their own external financing and the likelihood that the crisis will cause more firms to default on debts at home. The lira firmed to 5.9850 to the dollar by 1503 GMT, 2 percent up on the day.
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