Economics
Turkish Markets Catch a Break on Slower-Than-Forecast Inflation
- Currency earlier fell to a record low as U.S. tensions weigh
- July inflation was 15.9 percent, lower than all estimates
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Turkey’s lira and government bonds pared their declines as slower-than-expected inflation offered some relief to markets hit by U.S. sanctions.
The currency rebounded from a record low against the dollar and bond yields fell after data showed consumer prices rose an annual 15.9 percent in July, slower than all 15 economist estimates in a Bloomberg survey. The U.S. sanctioned two Turkish government ministers on Wednesday, a move that sent markets tumbling and sets into motion a diplomatic showdown that could eventually see Washington levy economic penalties.