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Turkish Lira Jumps on Hopes for Rates Orthodoxy After Departures

  • Locals said to be selling the currency as foreigners pile in
  • Lira posts biggest gain since 2018, main stocks gauge rallies
Updated on

The Turkish lira surged the most since 2018 as foreign investors bet higher interest rates could be coming after the weekend resignation of the country’s economy czar and the dismissal of the central bank chief.

The currency, the worst performer in emerging markets this year, gained more than 6% against the dollar, a rebound not seen since the aftermath of Turkey’s 2018 market meltdown. While overseas investors are piling into liras, locals and Turkish companies are using the rally as an opportunity to buy the greenback, according to three traders who spoke on condition of anonymity because they’re not authorized to comment publicly. The Istanbul stocks gauge headed for its biggest gain since August.