Turkish lira, stocks slip on strong U.S. data

Turkish lira, stocks slip on strong U.S. data

ISTANBUL Dec 12 (Reuters) - Turkey's lira and stocks slipped on Friday after strong U.S. retail sales and declining jobless claims bolstered the case for an interest rate hike, which would tempt funds away from riskier emerging markets.
turkish-lira-stocks-slip-on-strong-us-data Date Added : 19 December 2014 Friday

ISTANBUL Dec 12 (Reuters) - Turkey's lira and stocks slipped on Friday after strong U.S. retail sales and declining jobless claims bolstered the case for an interest rate hike, which would tempt funds away from riskier emerging markets.

Turkey would be especially vulnerable to a U.S. rate hike because its large current account deficit is financed by foreign capital inflows.

The lira slipped to 2.2735 against the dollar by 0834 GMT, from 2.2627 before the U.S. data releases on Thursday.

Istanbul's main share index fell 0.44 percent to 84,344.59, lagging behind the broader emerging markets index which was down 0.18 percent.

Falling crude oil prices capped losses. U.S. crude futures continued to drop after falling below the psychological support level of $60 a barrel for the first time in five years, and stood at $59.30 in Asia, down more than 1 percent on the day.

Lower oil prices are helping Turkey narrow its current account deficit and battle stubborn inflation with consumer prices forecast to show an annual rise of more than 9 percent at year end.

The benchmark 10-year government bond yield rose to 8.57 percent from 8.52 on Thursday. (Reporting by Dasha Afanasieva; Editing by Janet Lawrence)

 

source : af.reuters.com

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