Lira Advances, Bonds Rally as Fed Decision Eases Deficit Concern
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The lira gained to its strongest level in 2 1/2 months and bonds rallied the most in seven years after the Federal Reserve signaled plans to maintain near-zero interest rates through 2014, easing investors’ concern that the funding of Turkey’s current-account deficit.
The Turkish currency appreciated 1 percent 1.7879 per dollar as of 5:05 p.m. in Istanbul, from yesterday’s close in New York. That the highest level since Nov. 15. The yield on benchmark two-year debt fell 75 basis points, or 0.75 percentage point, to 9.62 percent, in the biggest fall since at least 2005 when Bloomberg started tracking the index.