Turkish lira weakens ahead of inflation report

ISTANBUL (Reuters): Turkey’s lira weakened by nearly half a percent on Tuesday, a day before the central bank’s inflation report and amid concerns that inflation will rise in the first quarter on the back of food prices.

The lira stood at 5.3490 to the U.S. dollar at 0710 GMT from Monday’s close of 5.3231. Earlier it had reached 5.3540, its weakest in about a week.

“The tone in tomorrow’s report is important, signs of a lowering in interest rates will be looked out for,” a banker said. The central bank is expected to announce its quarterly inflation report at 0730 GMT on Wednesday.