Turkish lira gains more than 4 percent vs dollar as demand eases

The Turkish lira gained more than 4 percent compared to its Monday's close at 1.65 levels.Â

 

The finalization of a foreign bank's dollar demand helped the lira to recover against the dollar, Barbaros Ozuyilmaz, bond desk manager in Istanbul based ABank told hurriyet.com.tr.

 

"A foreign bank's U.S. dollar demand, which pushed the currency up to 1.70 levels from 1.50 levels against lira, finalized on Friday. I see this as the reason for the dollar's easing against the lira," he said.

 

The 1.70 level is important and a new sell off will be seen if this level is reached again, Ozuyilmaz added.

 

Turkish stocks also increased after the Asian stocks and European shares rose in early trade on Tuesday to break a five-day losing streak.

 

The benchmark Istanbul Stock Exchange index increased 2.29 percent and closed the half day trade at 24.895 points, and the yield on the benchmark June 23, 2010 fell below 24 percent.

 

Most Asian stock markets rebounded Tuesday after several days of steep declines as investors snapped up beaten down shares like Honda and Samsung. Japan's benchmark Nikkei 225 index jumped 6.4 percent after early falling below 7,000 points to fresh 26-year lows.

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