The Turkish lira eased slightly on Friday as higher oil prices emphasised the risks of the economy's dependence on imported energy, while bonds took support from prospects for further monetary easing after weak output data earlier this week. The main stock index closed 0.66 percent down at 59,280.43 points, underperforming the MSCI emerging markets index which was up 0.79 percent.
By 1536 GMT, the lira traded at 1.7855 versus the dollar, weaker than 1.7787 in late trade on Thursday. Against its euro-dollar basket the lira stood at 2.0641, compared with 2.0980 in late trade on Thursday. Turkey's central bank kept monthly stock funding at 22 billion lira, but it decreased the total weekly stock funding amount to 25 billion lira from 29 billion lira a week earlier through two repo auctions on Friday, a move seen as supportive for the lira.Turkey's two-year benchmark bond yield stood at 9.18 percent, virtually unchanged from a previous close at 9.15 percent.
Turkish bond yields dipped on Tuesday with the benchmark yield declining as low as 9.10 percent as weak January industrial output data supported the case for further central bank easing. Fixed income traders said profit taking had stalled the fall in yields, but easing concerns about Greece and prospects for lower inflation could see yields resume their decline.