Turkish Lira Recovers

The Turkish lira jumped more than 1.5 percent on Tuesday in its biggest rally since mid-June, recovering from its biggest-ever drop the previous day, as Ankara and its Western allies weathered a potential diplomatic crisis.

Ten foreign embassies said on Monday that they are committed to foreign agreements of non-interference in other countries affairs, prompting President Recep Tayyip Erdogan to back off his threat to expel ambassadors of foreign countries who had earlier demanded the release of a jailed businessman.

The lira was at 9.45 against the dollar by 0848 GMT, its best performance since June 10. On Monday, it recorded a record low of 9.86, before rising again after the diplomatic calm.