ISTANBUL, Sept 18 (Reuters) - Turkey's lira and bonds rose
on Wednesday as investors expected the U.S. Federal Reserve to
set a modest pace in the reduction in its bond buying programme.
The lira rose to 2.0020 to the dollar from
2.0066 late in the previous session, having strengthened below
2.00 earlier in the day. The yield on the 10-year bond fell to 9.39 percent from 9.55 percent at
Turkey's main share index closed down 0.08 percent
at 74,720.58 points, outperforming the broader emerging-market
index which were down 0.52 percent at 1436 GMT.
After a two-day meeting, the U.S. Federal Reserve is
expected to trim its monthly spending on bond buying by $10
billion - a smaller amount than previously forecast after
worse-than-expected jobs data highlighted the need for a
little-by-little stimulus reduction.
Emerging markets have been hammered by signs the Fed will
reduce its asset purchases and cut the supply of cheap money,
much of which has flowed into riskier assets.
Turkey's huge current account deficit, $5.786 billion in
July, means it is particularly dependent on an inflow of foreign
capital to give it the hard currency it needs to buy oil and
other imports, and leaves the lira stricken when capital flows
(Reporting by Dasha Afanasieva; Editing by Ayla Jean Yackley,
Keywords: MARKETS TURKEY/
(Dasha.Afanasieva@thomsonreuters.com)(+90 212 350 7051)(Reuters Messaging: Dasha.Afanasieva.email@example.com)
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