(Bloomberg) -- Turkey’s lira rebounded from a record low against the dollar as some investors judged the currency’s losses excessive.
Local retail investors sold close to $400 million in foreign currency, according to an Istanbul-based trader who asked not to be identified, helping the lira extend a recovery to 4.80 per dollar. The currency plunged to an all-time low of 4.9743 earlier, extending a slide of 3.4 percent on Wednesday.
The lira has been one of the worst-hit currencies by an emerging-market sell-off in recent months, amid investor concerns that the nation’s monetary policy remains too loose to rein in runaway inflation and the nation’s deficits. It came under renewed pressure on Wednesday after AHaber television cited President Recep Tayyip Erdogan as saying interest rates would fall.
The lira was 1.1 percent stronger at 4.8247 per dollar as of 10:12 a.m. in Istanbul, and climbed as high as 4.8056 earlier. The yield on local 10-year bonds climbed 23 basis points to an all-time high of 18.71 percent, taking increases over past three days to 164 basis points.
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