Dollar Lower Against Lira After Turkey Cuts Key Interest Rate

By Joseph Adinolfi Markets MarketWatch Pulse

The dollar edged lower against the lira Tuesday after Turkey's central bank cut a key interest rate for the fifth straight month. The greenback was down 0.1% at 2.9790 lira, compared with 2.9813 lira late Monday in New York. Turkish stocks tumbled Tuesday, with the iShares MSCI Turkey ETF down 0.3% at $38.88. The central bank cut its overnight-lending rate to 8.75% from 9%, while keeping its benchmark one-week repo rate steady at 7.5% and its overnight borrowing rate at 7.25%. Some economists said they expected the central bank to wait before continuing to cut rates after the Turkish government fended off an attempted coup over the weekend.

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