Turkish Lira Dives After Central Bank Unexpectedly Stands Pat

By Victor Reklaitis Markets MarketWatch Pulse

The Turkish lira slumped against the dollar Tuesday after the country's central bank left a benchmark rate at 8%. A hike that would have supported the battered lira had been widely expected. The dollar was buying 3.7890 lira, a gain of roughly 1% from late Monday. The central bank has disappointed economists before. At its December meeting, the bank left interest rates unchanged, while an increase had been anticipated.

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