ISTANBUL Feb 11 Turkey's financial markets
weakened on Monday after a car exploded at a crossing on the
country's border with Syria.
By 1546 GMT, the lira had eased to 1.7758 to the dollar
from 1.7700 late on Friday. Against its euro-dollar
basket it weakened to 2.0757 from 2.0688.
"Expectations of a rate cut by the central bank weighed on
the lira ... The explosion at the Syrian border also affected
Turkish assets negatively," said Tufan Comert, strategist at
The explosion, near the Turkish town of Reyhanli, killed at
least nine people and wounded dozens more, officials said.
Analysts are also watching for signs that Turkey's central
bank may ease monetary policy further to stop the lira
strengthening too much and to support the economy.
The yield on the two-year benchmark bond
closed at 5.74 percent from Friday's close at 5.69 percent with
investors awaiting a treasury tap of a 14-month zero-coupon bond
Istanbul's main share index closed down 1.82
percent at 77,255.83 points, underperforming a fall of 0.27
percent in the global emerging markets index. Analysts
said the fall became sharper after the border explosion.
Shares in Turkish white-goods maker Arcelik fell
2.67 percent to 10.95 lira after the company's fourth quarter
net profit at 99.6 million lira ($56 million) came in far below
a Reuters forecast of 145 million lira, despite a rise of 8.3
percent from a year ago.
(Writing by Seltem Iyigun; Editing by Ruth Pitchford)