ANKARA, Turkey - The surprisingly big interest rate rise by Turkey's central bank has paid dividends, at least in the short-term, as the country's currency surged on foreign exchange markets.
In morning trading Wednesday, the
Turkish lira was up 1.8 percent against the dollar at 2.2116 Turkish lira.
Meanwhile, the main stock exchange was up 0.6 percent at 63,899.
The moves come in the wake of the
decision overnight by the central bank to increase its main overnight lending
rate to 12 percent from 7.75 percent.
The increase was far more than
expected and followed a sustained drop in the Turkish lira, which has been
battered by concerns over a global growth slowdown and the potential impact of
the further stimulus reductions by the U.S. Federal Reserve.