Posted by meb at October 27th, 2008

The Turkish Lira, or YTL, dropped by the most last week in 7 1/2 years against the dollar amid growing concern a global economic recession will sap demand for emerging-market currencies.

The YTL, the worst performer versus the dollar among the 26 emerging-market currencies tracked by Bloomberg last week, slumped as investors shunned higher-yielding assets.

“The government has been fairly reluctant to sign a new IMF deal,” said Nicholas Kennedy, an emerging-markets currency strategist at 4Cast Ltd. in London. “That is what the market is calling for.”

The U.S. dollar traded at YTL 1.6912 in Istanbul Friday, taking its decline this past week to 10.5 percent.

The central bank is selling dollars to try to support the YTL and assure liquidity. It began daily auctions of up to $50 million Thursday.
source: Turkish Daily News

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