ISTANBUL Jan 23 Turkey's lira touched a new
record low against the dollar on Thursday, forcing the central
bank to intervene directly in the forex market to halt the
slide, bankers said.
Two days ago the central bank left interest rates on hold
and on Wednesday it failed to meet market expectations for
earlier and longer additional tightening, triggering further
losses in the currency.
Turkey's lira weakened as far as 2.3050 against
the dollar by 1544 GMT from 2.2635 late on Wednesday. By 1613
GMT it was at 2.289.
A corruption scandal shaking the government and fears about
the impact of cuts to U.S. monetary stimulus have sent the lira
down 10 percent against the dollar over the past month, and
investors had been crying out for a rate hike to defend it.
The yield on the 10-year benchmark bond
rose to 10.37 percent from 10.10 percent a day earlier.
The main Istanbul stock index closed down 2.88
percent at 65,429.29 points, underperforming the main global
emerging market index, which fell 1.08 percent.
(Reporting by Seda Sezer, Editing by Alexandra Hudson and Mark