ISTANBUL: Turkey's lira firmed some 1% on Thursday, recouping some recent losses for a third consecutive day as expectations grew that the central bank would hike its policy interest rate from 17% next week.

The lira stood at 7.44 against the US dollar at 0720 GMT, firming from Wednesday's close of 7.5120. It climbed as much as 7.7840 on Monday as yields on US bonds rose.