ISTANBUL, July 5 (Reuters) - The Turkish lira traded at an all-time-low against the dollar on Friday after stronger-than-expected U.S. jobs growth knocked emerging markets, and shares fell more than 3 percent.
The lira touched 1.9705 against the dollar, and traded at 1.9668 by 1542 GMT, weakening from 1.9435 late on Thursday.
U.S. job creation was faster than expected in June, which could draw the Federal Reserve closer to scaling back the monetary stimulus which has fed a boom in higher-yielding emerging market assets.
'The dollar is gaining globally and U.S. 10-year Treasuries yields are rising. The data will boost expectations that the Fed will cut stimulus starting from September. Thus volatility in the lira and stock exchange is likely to continue,' said Alper Erginol, assistant research manager at Oyak Securities.
The lira has lost more than 5 percent of its value against the dollar since late May as weeks of anti-government protests in Turkey spurred a selloff induced by Fed talk of eventual policy change.
Turkey's central bank has been holding intraday forex auctions since June 11 to support the weakening lira, and has sold $2.65 billion through these auctions.
The yield on the 10-year bond maturing on March 8, 2023, rose to 8.91 percent from 8.72 percent before the data.
The main Istanbul stock index fell 3.05 percent before paring losses to close at 73,111.83 points.
(Writing by Ece Toksabay; Editing by Ruth Pitchford) Keywords: MARKETS TURKEY/
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