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Turkish Lira, Stocks Rally as Central Bank Hikes as Forecast

Turkey's Finance Minister Resigns Amid Deepening Economic Woes

Photographer: Burak Kara/Getty Images

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The lira and Turkish stocks rallied after the central bank raised its key rate in line with forecasts, fueling speculation President Recep Tayyip Erdogan will make good on a pledge to return to market-friendly policies.

The lira appreciated as much as 2.5% per dollar following the decision to hike by 475 basis points, helping the currency buck declines among emerging-market currencies on Thursday. The benchmark stock index reversed ealier losses.