ISTANBUL, June 25 Turkey's lira and stocks
reversed its losses on Wednesday after a big downward revision
to U.S. economic data raised analysts' expectations of continued
loose monetary policy and cash inflows into emerging markets.
U.S. gross domestic product fell at a 2.9 percent annual
rate, instead of the 1.0 percent reported last month, showing
that the U.S. economy had contracted at a much steeper pace than
The Turkish lira was at 2.1327 by 1523 GMT
versus 2.1401 earlier on Wednesday. The main Istanbul share
index reversed its earlier losses to close flat at
The U.S. data revision could prompt the Federal Reserve to
postpone its expected interest rate hikes, which would be a
positive for emerging markets like Turkey, Serdar Pazi from
Finansinvest said. "We have seen a rise in emerging markets
following the revision," Pazi said.
Concerns about escalating violence in neighbouring Iraq
continued to keep a lid on the Turkish lira. The finance
minister warned that the crisis in Iraq, Turkey's second-largest
export market, is likely to weigh on Turkey's current account
deficit, the country's main economic weakness.
(Writing by Humeyra Pamuk; Editing by Hugh Lawson)