Dollar/lira tests lowest level of six months

ISTANBUL

REUTERS Photo

The dollar/lira ratio has touched its lowest level since Dec. 18, 2013 on global markets’ optimism fueled with the heightened speculation the European Central Bank will announce another stimulus next month.

The Turkish Lira, which started the day off at around the level of 2.650, strengthened up to 2.617, the lowest level it has seen since one day after the launch of the ground-shaking corruption investigation on Dec. 17.

The lira was already weakening due to Fed tapering concerns, but the Dec. 17 graft investigation on four ministers and key government allies dealt a major blow to the currency.

The lira received a boost from good sentiments in Europe after comments from two Bundesbank sources that the German central bank was prepared to support the European Central Bank policy action, if needed, to shore up the region’s economy, according to Reuters reports.