Turkish lira weakens, adding to pressure on central bank
ISTANBUL Jan 15 (Reuters) - Turkey's lira weakened on Wednesday, adding to pressure on the central bank to hike interest rates to support the currency as a government corruption scandal and the reduction of U.S. bond buying dampen appetite for Turkish assets.
The lira weakened to 2.1880 against the dollar by 1542 GMT from 2.1830 late on Tuesday, not far off record lows, as investors wondered whether the bank might raise rates as early as next week.
The main Istanbul index closed up 0.09 percent at 68,134.63 points but underperformed the main global emerging market index which rose 0.24 percent.
The yield on Turkey's 10-year benchmark bond rose to 10.18 percent from 10.05 percent late on Tuesday.
The Turkish central bank has so far refused to hike rates for fear of harming economic growth ahead of elections, instead opting to sell dollars to protect the lira. (Reporting by Dasha Afanasieva; Editing by Hugh Lawson)