Turkish markets nervous
ISTANBUL (Reuters) – Turkish markets tumbled yesterday amid concerns over surging oil prices that may swell an already large current account deficit and over Turkey’s planned start of European Union entry talks in October. The lira eased to 1.3455 against the dollar after weakening to an intraday low of 1.3500. It was at 1.3280 on Thursday. «We see the lira weakness coming in line with our expectations on the back of a wake-up to the problems surrounding the accession negotiations framework and EU countries’ criticism on non-recognition of Cyprus,» said BACA, HVB Group analyst Simon Quijano-Evans. But other analysts said higher interest rates in Turkey may support capital inflow and the lira may recoup lost ground.
