Bloomberg News

Lira Advances First Day in Five on Risk Appetite, Dollar Sales

November 18, 2011

Nov. 18 (Bloomberg) -- The lira appreciated for the first day in five, rebounding from a one-month low yesterday as risk appetite rose amid speculation the U.S. Federal Reserve will introduce more stimulus and Turkey increased dollar sales.

The lira strengthened 0.3 percent to 1.8229 per dollar at 5:04 p.m. in Istanbul, trimming its weekly loss to 2.5 percent. The currency has weakened 15 percent this year, making it the second-worst performing currency among more than 20 tracked by Bloomberg.

“Risk appetite has picked up again slightly today,” Thu Lan Nguyen, a currency strategist at Commerzbank AG, said in e- mailed comments.

Federal Reserve Bank of New York President William C. Dudley said there’s more the Fed can do to boost the U.S. economy, including resuming asset purchases. Turkey’s central bank sold $70 million in an auction today, the most since selling $350 million on Oct. 24. The bank in Ankara offered $50 million yesterday, raising total sales since Aug. 5 to $8.8 billion to shore up the lira and control inflation.

“It would be a good opportunity now to increase the FX auction volume for example and drive the lira lower when the market is going your direction already,” Nguyen said before the auction announcement from the central bank.

Yields on two-year benchmark debt declined the first day in five, falling 11 basis points, or 0.11 percentage point, to 10.49 percent, a Turk Ekonomi Bankasi index of the securities showed, paring the weekly increase to 57 basis points.

--Editors: Linda Shen, Ash Kumar

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus