Categories: AsiaEuropeInternational Investing

Turkey Rate Hike Fails to Halt Lira Bleeding as Stocks Slump

Turkey Rate Hike Fails to Halt Lira Bleeding as Stocks Slump (Bloomberg)

The lira reversed earlier gains after doubling its interest rates failed to assuage concern that Turkey’s economy will be hurt by a slowdown in China and a reduction in U.S. monetary stimulus. Stocks fell even though the Turkish currency depreciated as much as 2.4 percent, after strengthening more than 4 percent following the central bank’s midnight rate hike decision. Yields on two-year benchmark notes decreased 18 basis points to 10.88 percent in Turkey and the Borsa Istanbul 100 Index of shares slumped 2.3 percent. Prime Minister Recep Tayyip Erdogan, who said yesterday he’s always opposed higher rates, is embroiled in a graft scandal that has ensnared several ministers and the chief executive officer of a state-owned bank.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.