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ISTANBUL (Reuters) – The reading rose on Thursday, outperforming other emerging market currencies.
The lira stood at 5.5850 for a dollar at 12:54 GMT, up more than 0.5% from the close of 5.6175 on Wednesday. The currency rose to 5.5480 earlier in the session.
William Jackson, economist at Capital Economics, said the lira attracted investors because of the high real interest rates, which recently contributed to its outperformance compared to its emerging market peers.
The Turkish central bank lowered its key rate by 425 basis points last month to 19.75%, while inflation was 16.65%.
The lira reached its highest level in four months last week despite concerns over the independence of the central bank after the dismissal of Turkish governor Recep Tayyip Erdogan, as well as possible US sanctions against Turkey for buying Russian S-400 missile defense systems. .
(Reuters)
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