Azernews.Az

By Bloomberg

Turkey’s lira erased losses and stocks rose after President Recep Tayyip Erdogan urged political parties to form a government soon, fueling optimism new elections will be averted. Bonds gained for a second day.

The currency climbed 0.1 percent to 2.7318 against the dollar at 2:44 p.m. in Istanbul after falling as much as 0.5 percent. Everyone should “put their egos aside” and establish a government, Erdogan, former Prime Minister and founder of the ruling AK Party, said in a speech in Ankara, his first public appearance since the June 7 parliamentary elections.

The AK Party failed to win a majority in parliament for the first time since 2002, raising concern about the trajectory of policy making for the $800 billion economy. Options include a minority government, a coalition or a rerun of the poll. Erdogan has been criticized for his attempts to shift power to the presidency and away from parliament.

“The formation of a government will ease political uncertainties, and a president pushing for union is naturally perceived positively,” Ipek Ozkardeskaya, a market analyst at London Capital Group, said by e-mail. There is “relief in the markets,” she said.

The lira strengthened 0.7 percent yesterday after tumbling 3.3 percent to a record on Monday. It’s the only emerging-market currency to advance against the dollar today.

The yield on two-year government bonds dropped 12 basis points to 10.11 percent, falling for a second day. The Borsa Istanbul 100 Index climbed 0.4 percent, taking its advance since Tuesday to 2.9 percent.