Turkey’s lira continued its rally at a strong pace, adding to Monday’s 23% surge that followed the announcement of extraordinary measures from the government to bolster the currency.
The lira soared as much as 20% against the U.S. dollar, extending the currency’s gains since Friday to more than 40%. The whipsaw trading saw the currency swing from a record low of 18.3633 early on Monday to as strong as 11.0990 in Istanbul on Tuesday morning. The two-day rally is the biggest since 1983, according to data compiled by Bloomberg.
The currency rocketed Monday after President Recep Tayyip Erdogan’s government said it planned a number of measures including the introduction of a program to protect savings from the lira’s fluctuations. The government will make up for losses incurred by holders of lira deposits should its declines against hard currencies exceed interest rates promised by banks, Erdogan sa