Turkey’s lira on back foot on political risk worries

The lira fell more than 1.5 percent on Monday, its biggest one-day decline since a tumble on June 8. (File photo: Reuters)

Turkey’s lira remained on the back foot on Wednesday, after being hammered this week by the resurgent dollar and heightened concern about political risk following a bombing that killed at least 30 people.

The suspected ISIS suicide bombing in the southeastern town of Suruc on Monday has triggered anti-government protests across the country. Demonstrators say the government has in the past supported Islamic State militants in Syria, accusations Prime Minister Ahmet Davutoglu has rejected.

Some protests have turned violent, and police detained at least 11 people overnight.

Another demonstration is set for this weekend.

“This weekend’s protest march against (ISIS) in Istanbul may be considered an event risk for TRY assets,” Isik Okte, a strategist at TEB Investment, said in a note to clients.

The lira was 0.1 percent weaker at 2.6875 to the U.S. dollar at 1042 GMT.

It fell more than 1.5 percent on Monday, its biggest one-day decline since a tumble on June 8 after the ruling AK Party unexpectedly lost its overall majority in an election.

The BIST 100 stock index, the broadest measure of Turkish stock market performance, dipped 0.08 percent to 81,518.85.
Investors are largely looking past Thursday’s monetary policy meeting, at which the central bank is widely expected to keep rates on hold.

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Last Update: 10:46 KSA 13:46 - GMT 10:46
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