Lira loses ground against US dollar

Bloomberg

YTL fell the most among emerging-market currencies in the region as the greenback was trading at around YTL 1.64 at 4:52 p.m. yesterday. The euro was trading at around YTL 2.05, representing a gain of 5 percent since Nov. 3. The U.S. dollar gained more than 5.7 percent against the Turkish currency in the same period.

The currency was also hurt after Russia's central bank on Tuesday widened the ruble's trading band to stem a drain on foreign capital.

"Investors are cautious about the region as there are worries about the economic outlook," said Agata Urbanska, an economist in London at ING Group. "The Russian decision on the ruble also added to risk aversion toward eastern European currencies."

The YTL depreciated almost 39 percent in the past three months as the global financial crisis sapped investors' appetite for higher-yielding assets.