Posted by meb at November 11th, 2008

The Turkish lira fell four percent against the dollar and Istanbul stocks closed some three percent lower on Tuesday as fears of looming recession and the fading appetite for risk pressured emerging markets.

The lira closed at 1.5845, and sold even lower at 1.6050 in Wednesday-dated trade, after closing on Monday at 1.5230.

The main stock exchange index .XU100 closed down 3.4 percent at 25,889 points, slightly outperforming the MSCI index of emerging stocks which by 1500 GMT traded down 4.7 percent.

“The sell-off of the Turkish lira continues… there is a general mood of risk aversion,” said an Istanbul-based trader, adding Turkish savers were also not buying lira and keeping what forex deposits they had.

“Liquidity is not very good, so this is accentuating exchange rate movements,” he said.

Analysts said corporate earnings and a slew of grim Turkish economic indicators were starting to corroborate recession fears.
source: Hurriyet daily news

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