(Bloomberg) The Turkish lira reversed weeks of losses to trade up 15% at 11.3165 against the dollar as of 9:15 a.m. on Tuesday on announced measures to support the weakening currency.
The renewed upsides of the lira happen after President Recep Tayyip Erdogan introduced a program that protects investors’ savings from price swings of the local currency.
Erdogan promised to compensate for losses sustained by holders of lira deposits if the decline exceeds rates offered by banks.
The promises by Erdogan follow concerns about the lira weakness after the country’s central bank initiated rate cuts amid warnings from analysts.
The rise of lira is a boost for a currency that has been declining sharply, hitting a record low of 18.3633 against the dollar on Monday. At 15.1% jump, the rally is the biggest gain by lira since 1983.
USDTRY is down -1.61%.
