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Boost for Turkish lira in wake of election

Boost for Turkish lira in wake of election
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The Turkish lira touched its strongest level for more than two months on Monday morning on the back of Prime Minister Recep Tayyip Erdogan’s party scoring a victory in the country’s local elections. The currency brushed 2.165 against the dollar.

Stocks were also buoyant opening almost two percent up to hit their highest levels in three months.

A further boost came from economic figures released on Monday which showed Turkey’s GDP grew by 4.4 percent in the fourth quarter of 2013 beating a forecast of 4.0 percent.

The local elections were Erdogan’s first electoral test since anti-government protests last summer.

One analyst warned that any sense of relief needed to “be tempered by the realisation the election has thrown the bitter political divisions in Turkish society into even sharper focus”.