The Turkish lira held steady on Tuesday as investors weighed the impact of US sanctions over the country’s purchase of Russian S-400 defenses, while emerging-market equities struggled as surging Covid-19 cases led to new lockdowns across Europe.
The lira extended gains to trade at 7.8346 per dollar.
It had rallied 1% to as much as 7.8160 per dollar on Monday after Washington imposed light, targeted sanctions on Ankara that analysts said could expand depending on how ties between the NATO allies evolve under a Joe Biden White House.
“It was clearly better than feared,” said Peter Kinsella, head of FX strategy at UBP.
“The fact they had only placed sanctions on the defense industry and not the banks is pretty important.”