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The Lira Is On a Tear

  • The lira advances most in the world against the U.S. dollar
  • Policy makers to use one-week repo rate as main policy tool
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Bloomberg’s Enda Curran reports on the rally in the Turkish markets.(Source: Bloomberg)
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The lira strengthened the most in the world on optimism the central bank’s decision to bring clarity to its interest-rate regime is a sign it may be able to fight the currency’s depreciation without pressure from President Recep Tayyip Erdogan. Stocks and bonds also rallied.

The currency snapped two days of declines as the monetary authority said, starting June, its benchmark would be the one-week repurchase rate, which it hadn’t used as its main funding tool since January 2017. The one-week rate has been set at 16.5 percent, the central bank said in a statement.