Turkish lira at firmest level in a month as U.S. dollar weakens

The Turkish lira currency, which hit its all time low above 1.82 levels on March 9, traded at 1.68 levels on the interbank market gaining more than 2 percent from Wednesday's close.

 

The dollar fell against a basket of international currencies after the U.S. Federal Reserves said it would buy long-term Treasury debt.

 

The lira has also pared losses this week on expectations Turkey will sign an accord with the International Monetary Fund after local elections this month.Â

 

Fueled by a slowdown in the Turkish economy, the need of companies to repay their dollar debts and a global search for safe havens, the dollar gained more than 35 percent against the Turkish currency during the past 12 months.  Â