Turkish Lira Rises 7%

The Turkish lira rose 7 percent on Tuesday after a historic rebound of 25 percent on Monday from record lows, after President Recep Tayyip Erdogan unveiled a plan he said would protect local currency deposits from market volatility.

The currency fell and then rose in turbulent trading to record 12.21 pounds to the dollar at 0559 GMT, after closing at 13.15 pounds to the dollar.

Erdogan said in a speech late on Monday that the set of steps included in the plan would ease the burden of the currency collapse in the past weeks and encourage Turks to save in local currency instead of dollars.

He did not clarify how the government would finance this initiative, which may be costly and increase inflation.

Before the plan was announced, the lira was down 10 percent at 18.4 to the dollar. After that, it rose to 12 pounds, the highest rise recorded in one day, and closed at a rise of 25 percent.