(Bloomberg) --

Overseas investors ramped up purchases of Turkish stocks at the fastest pace since November, joining a rally fueled by local investors seeking protection from the fastest inflation in a quarter century. 

Foreigners poured a net $366 million into Turkish equities in the week ended Aug. 19, according to central bank data. Stocks have climbed 68% in local currency terms so far this year, the most worldwide. In dollar terms, they’re the third-best performer.

A surprise central bank interest-rate cut last week rattled traders and sent the lira close to a record low, adding fresh impetus to the hunt for investments offering protection against price growth. As Turks pile into equities to safeguard their savings, foreign cash is returning too as investors seize the opportunity for higher returns. 

Still, the pickup in inflows has yet to offset the foreign exodus since the start of the year. Total year-to-date outflows stand at about $2.9 billion.

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