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Turkish lira hits 4-month low amid emerging market sell-off
August 6, 2014 / 3:10 PM / 3 years ago

Turkish lira hits 4-month low amid emerging market sell-off

ISTANBUL, Aug 6 (Reuters) - Turkey’s lira fell to a four-month low as risk aversion over Ukraine was exacerbated by credit rating downgrade fears and government pressure for interest rate cuts, ahead of Sunday’s presidential election.

Amid an emerging market sell-off fuelled by concerns that Russia had amassed around 20,000 troops on neighbouring Ukraine’s eastern border, Turkey’s lira weakened to 2.1617 against the dollar by 1450 GMT.

It eased off a day’s low of 2.1755, its weakest since March. It stood at 2.1463 late on Tuesday.

The main Istanbul share index closed down 1.5 percent at 79,432 points, underperforming the broader emerging markets index, which was down 0.73 percent.

Islamic lender Bank Asya bucked the trend rising more than 8 percent, after Turkish Deputy Prime Minister Ali Babacan said state-run Ziraat Bank could buy it.

The benchmark 10-year government bond yield rose to 9.55 percent from 9.41 percent at Tuesday’s close.

Reporting by Dasha Afanasieva; Editing by Humeyra Pamuk and Alison Williams

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