Lira Climbs With Turkish Stocks as Oil Trades Below $60Tugce Ozsoy
Turkey’s lira gained and stocks rebounded from a two-week low as falling oil prices boosted prospects for the country’s balance of payments and some analysts speculated the affect of the Greek crisis will be limited.
The lira added 0.4 percent to 2.6786 per dollar at 6 p.m. in Istanbul, reversing losses of as much as 1 percent, as Brent crude slid below $60 a barrel for the first time since April. The Borsa Istanbul 100 Index climbed 1.4 percent with eight shares advancing for every one that declined.
“The fall in Brent crude helped lira recoup earlier losses and lift stocks,” said Pinar Uslu, a strategist at ING Bank AS in Istanbul. “If this decline is sustained, it may have a positive effect on Turkey’s current-account deficit.”
Turkey, which imports most of its energy needs, has the second-biggest current-account gap relative to its gross domestic product among the Group of 20 biggest economies. The lira outperformed 24 other emerging-market currencies and stocks posted the fourth-biggest gain among more than 90 gauges tracked by Bloomberg worldwide.
Brent crude dropped as much as 3.4 percent to $58.28 a barrel, the lowest price in almost three months.
Most developing-nation stocks and bonds declined today as Greece’s rejection of austerity led investors to shun riskier assets.
Turkey’s lack of trade with Greece and limited financial ties will help contain any impact from the crisis, Volkan Muhurcuoglu, an analyst at Istanbul-based Oyak Securities, said by e-mail.
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