Turkish Lira at a Month High as Interest Rate Cut Fears Recede

The Turkish lira rose to its highest level in a month on Friday, buoyed by fading fears of an imminent interest rate cut as well as increasing optimism over emerging market currencies.

The lira rose 0.6% to 8.5 per dollar, extending its recovery from a record low of 8.88 in early June. It rose for the past five days in a row.

Turkey’s central bank kept its interest rate at 19% on Wednesday and said inflation could be volatile during the summer but gave no clear indication that the expected easing was imminent.