The Turkish lira weakened slightly on Wednesday, remaining around its weakest levels in seven months, after Iran fired missiles at US-led forces in Iraq.
The lira stood at 5.9755 against the dollar at 0730 GMT, compared with a close on Tuesday of 5.9730 and having weakened as far as 5.9885 overnight after initial news of the missile strikes emerged.
"We expected very strong global selling pressure, but the lira reaction was virtually non-existent," a treasury desk trader at one bank said, pointing to a modest change in oil prices as one reason for the limited currency move. The Turkish currency weakened 11% last year, in part due to Turkey's military incursion in Syria and the threat of US sanctions, bringing losses over the last two years to 36%. The yield on the benchmark 10-year bond, which has fallen from 21% in May, was steady at 12.28% on Wednesday. The main BIST 100 share index was down 0.76%.
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