Lira declines as Turkey's deficit grows

The Turkish lira headed for the lowest level against the dollar in two weeks and bonds fell after the current account deficit more than doubled from a year ago and the debt crisis in Europe intensified concern about the global economy. The lira dropped as much as 0.6 per cent to 1.6374 per dollar in Istanbul and declined 0.5 per cent in morning trading. Two-year benchmark bonds weakened, with yields climbing five basis points to 8.96 per cent. Turkey's current account gap expanded to $7.8 billion (Dh28.6 billion) in May from $3 billion a year previously, the central bank said on its website yesterday. Turkish gross domestic product expanded 11 per cent in the first quarter from the year-earlier period, the fastest pace in the G20 major economies, drawing in imports of raw materials and consumer goods. From / Gulf News