Economics
Turkish Assets Rally After Trump Seen Softening Sanctions Threat
- Lira rises most in the world, stocks advance more than 2%
- Credit default swaps decline to lowest level since March
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The lira and Turkish stocks advanced after U.S. President Donald Trump’s indicated he may reassess his threats to sanction Turkey over its purchase of a Russian missile defense system, fueling speculation that any penalty imposed will be benign.
The currency climbed more than 2% against the dollar, pushing the dollar-lira pair below its 100-day moving average. It’s now testing its 50-week moving average, a level it hasn’t closed below since September 2017. The country’s banking stocks helped push the benchmark Borsa Istanbul 100 Index up as much as 3.2%, and credit default swaps declined to the lowest level since March on a closing basis.