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Turkish lira, shares weaken as row with Germany escalates

A money changer counts Turkish lira bills at an currency exchange office in Istanbul December 16, 2014. REUTERS/Murad Sezer

ISTANBUL (Reuters) - The Turkish lira and shares weakened on Thursday after Germany warned its citizens to take care when traveling to Turkey and threatened to end corporate investment guarantees, steps which could hurt the Turkish economy.

The lira dropped to 3.5425 against the dollar by 1133 GMT from Wednesday’s close of 3.5225. The main Istanbul share index dropped 0.57 percent to 106,811 points.

The deepening dispute was fueled by Turkey’s arrest of six human rights activists including German national Peter Steudtner.

(This version of the story corrects lira figure in second paragraph)

Reporting by Can Sezer; Writing by Daren Butler; Editing by David Dolan

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