ECONOMY

Turkish lira weakens by 1.1 percent

ISTANBUL (Reuters) – Turkey’s lira weakened 1.1 percent against the dollar to 1.1850 in interbank market trade yesterday from the previous day’s 1.1720 amid ongoing investor anxiety over a global credit crunch. Analysts said the fall of the lira could be attributed to broader dollar strength globally and weak equities in core markets. Bonds also weakened, with the yield on the benchmark Aug. 5, 2009 paper rising to 16.52 percent from 16.47 percent. Separately, Turkey’s parliament passed the central budget bill for 2008, which the government says upholds tight fiscal policies.