The Turkish lira rebounded modestly on Monday after the country's central bank stepped in to prop up the currency and political tensions eased.
The lira tumbled to record lows against the dollar last week amid the mounting political crisis stemming from a bribery investigation that has engulfed several government officials, The Wall Street Journal reports.
Prime Minister Recep Tayyip Erdogan blasted the judiciary and fired nearly half of his cabinet, with one departing minister calling for Erdogan to step down, which further upset markets.
After dropping approximately 6 percent from the time the bribery investigation was revealed Dec. 17, the lira rose 1.3 percent against the dollar, which traded at TRY2.1274, according to The Wall Street Journal.
"Stepped-up intervention and some reports of easing tension between the government and judiciary has seen the Turkish lira bounce back," Brown Brothers Harriman analysts wrote in a note to clients Monday, The Wall Street Journal reports.
The lira was already considered one of the most fragile emerging-market currencies, with Turkey facing a wide current-account deficit.
Some analysts say the Turkish central bank would also likely take more aggressive steps, including an interest-rate hike, to protect the currency if it saw more large losses.
More Stories
- EUROPEAN INVESTMENT BANK: Bosnia and Herzegovina: EIB provides €340 million to advance works on northern part of Corridor Vc
- ABN AMRO SERVICES COMPANY: Fempower Your Growth: like tindering with female entrepreneurs
- EUROPEAN INVESTMENT BANK: Egypt: Team Europe - EIB and Banque Misr work together to support private businesses and speed up the recovery of SMEs from COVID-19
- ASIAN DEVELOPMENT BANK: ADB, NNS Sign Loans to Build Milestone Solar Power Project in Uzbekistan
- ASIAN DEVELOPMENT BANK: $123 Million ADB Loan to Help Build Elevated Walkways in Manila
- EUROPEAN INVESTMENT BANK: Germany: EIB provides €15 million of funding to IDnow
- ASIAN DEVELOPMENT BANK: CAREC Endorses Long-Term Strategy to Promote Safe, Sustainable, and Inclusive Tourism
- EUROPEAN INVESTMENT BANK: EIB Group provides €150 million to support artificial intelligence companies
- ASIAN DEVELOPMENT BANK: ADB Approves $430 Million to Help Rehabilitate Power Distribution Networks in Uttar Pradesh, India
- EUROPEAN INVESTMENT BANK: Greece: EIB backs EUR 470 million road safety scheme