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Turkish Lira Weakens as Slowing Inflation Stokes Rate-Cut Bets

  • Lira leads declines among 24 emerging-market currencies
  • September inflation slowed to lowest in more than a year

Turkey’s lira weakened the most in emerging markets and bonds gained as slowing inflation prompted investors to bet policy makers will step up the pace of interest-rate cuts.

The currency weakened 0.5 percent to 3.0135 per dollar as of 3:39 p.m. in Istanbul and the yield on 10-year lira bonds fell 13 basis points, set for the biggest drop in more than a week. Inflation in September declined to 7.69 percent, the lowest in more than a year, held back by falling food prices.