The Turkish lira and bonds slipped on Friday as increasing conflict in neighbouring Syria unsettled investors, with the market also hit by a global flight to safe-haven assets in response to coronavirus worries. Syria-related jitters increased after Turkish forces and Syrian rebels fought government troops in northwest Syria on Thursday and Russian warplanes struck back in an escalation of the fighting there.
The lira touched a level of 6.11 against the US currency, compared to a close on Thursday of 6.1005. It has lost 2.6% of its value this year, on top of a 36% depreciation in the last two years after a currency crisis in 2018. The lira was also unsettled by fears over the creeping spread of the coronavirus, which sent funds towards US assets and lifted the dollar to three-year highs.
The yield on the benchmark 10-year bond rose to 12.31% from 12.03% on Thursday. It had recently fallen below 10% thanks to an aggressive rally since May, when the yield was 21%. The main BIST 100 share index was flat after a 3% decline a day earlier.
The lira - which remains somewhat fragile after the 2018 crisis briefly halved its value - has lost ground in nine of the last 12 trading days."The strong trend in the dollar is the most important factor pressuring the lira. Today, the global risk appetite and the developments in Syria will be watched in particular," said a treasury desk trader at one bank.
Comments
Comments are closed.