Sept. 28 (Bloomberg) -- The lira pared gains against the dollar after the Turkish central bank reduced the amount of foreign exchange it plans to sell today to $100 million from $280 million yesterday.
The lira appreciated as much as 0.3 percent today and erased its gain to trade little changed at 1.8487 per dollar at 11:27 a.m. in Istanbul.
The central bank’s $280 million sale for lira yesterday was the second-biggest amount since it began the auctions on Aug. 5 to shore up the lira, the world’s worst-performing emerging market currency this year.
The bank “is playing too much with the sale figures and this is irking the market,” Eren Yardimci, a currency trader at UBS AG in Zurich, said in response to e-mailed questions.
“The euro-dollar basket has hardly changed today compared to yesterday and for that reason the market was expecting a figure around $200 million,” Yardimci said.
The lira has depreciated 16 percent against the dollar this year, as a widening current-account deficit and worsening debt crisis in Europe hurt investor confidence in the country’s financial stability.
Yields on the two-year benchmark bond rose 2 basis points, or 0.02 percentage point, to 8.45 percent, according to the RBS Istanbul Benchmark Bond Index.
--Editors: James Kraus, Alan Purkiss
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