Lira rises after failed coup

A Turkish army armed vehicle drives in Istanbul on July 16, 2016. President Recep Tayyip Erdogan battled to regain control over Turkey on July 16, 2016 after a coup that claimed more than 265 lives, bid by discontented soldiers, as signs grew that the most serious challenge to his 13 years of dominant rule was faltering. - AFP

ISTANBUL: Turkey’s lira rebounded from its biggest retreat in eight years after the government thwarted a coup attempt that erupted last Friday. Bonds tumbled as the cost of insuring the country’s debt soared, while shares in Turkish Airlines and banks led a slump in stocks.

The currency gained 1.8% to 2.9627 per dollar, trimming last Friday’s 4.6% decline, as traders said local investors were selling dollars to take advantage of the sell-off. The Borsa Istanbul 100 Index, which had closed before the clashes began, dropped as much as 5.2%, the most in three years. Yields on 10-year government bonds jumped 60 basis points, their biggest advance since 2013.