Turkish lira, markets heal on lower Syria concerns

ISTANBUL – Hürriyet Daily News

The Turkish stock market has begun the day with gains and the dollar retreated against the Turkish Lira as worries about a military strike against Syria diminished.

While the markets are awaiting the Central Bank’s new policies with anticipation, the dollar fell to around 2.01 against the lira, logging a remarkable slip from last week’s record high of 2.07. 

The stock markets also started the day with the Syria strike optimism as its main share index climbed above 3.2 percent and was around 68,545 points at closure.

A possible strike against Syria was delayed after U.S. President Barack Obama decided to seek congressional approval, opening the risk that Congress will not support such action, an outcome similar to that seen in the British Parliament last week.

While the investors will closely watch the political developments regarding the issue, additional economic data from the United States that will be announced throughout the week will also influence the pace of the currencies and stocks. 

The U.S. data are critically important as they will light the way for the U.S. Federal Reserve’s decision to taper its asset purchase program, which was the initial concern that caused the dollar rally and emerging market’s currency tumble in the first place.

The investors are also curious about what the Central Bank’s next move would be in its bid to protect the lira from further sliding. 

The Borsa Istanbul, Turkey’s stock exchange has been the worst performing bourse last week, logging 9.5 percent losses in five days, due to liquidity concerns and political tension.