Nov. 17 (Bloomberg) -- The lira declined for the fourth day against the dollar, the longest losing streak since July, as concern Europe’s debt crisis will worsen damped investor appetite for riskier assets.
The lira depreciated 0.1 percent to 1.8086 per dollar at 6:14 p.m. in Istanbul, the weakest level on a closing basis since Oct. 21.
Emerging market stocks fell for a third day and the cost of insuring government debt against default in eastern Europe, the Middle East and Africa rose after Spanish and French borrowing costs increased at auctions today.
“The lira’s depreciation may continue if risk appetite remains like this,” Bulent Topbas, a fund manager that helps managing $100 million at Strateji Menkul Degerler in Istanbul said in e-mailed comments.
The central bank sold $50 million, bringing its total this week to $140 million. The bank has sold around $8.8 billion since Aug. 5 in daily auctions and a direct intervention to shore up the lira.
“The lira weakened to as low as 1.8150 after the central bank offered only $50 million despite demand from public companies in the morning and foreigners’ sales on worsening foreign markets,” Istanbul-based Garanti Securities strategist Tufan Comert said in a note.
Yields on two-year benchmark debt rose eight basis point, or 0.08 percentage point, to 10.60 percent, a Turk Ekonomi Bankasi index of the securities showed, in their fourth day of advances.
--Editors: Stephen Kirkland, Peter Branton
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