Analysts, however, warn of a false dawn, pointing out political pressure could limit the central bank’s room for manoeuvre.
Environmental objections in Italy pose threat to last leg of Southern Gas Corridor designed to deliver Azerbaijani gas to EU.
Central bank says it is set to adjust its monetary stance, but market consensus is that it will not deliver the required radical rate hike given political pressure.
Data underlines acceleration in the pace of the rebalancing seen in the crisis-hit Turkish economy.
"Remarkable and simply dreadful print. Clear evidence now of a very hard landing in Turkey," says analyst.
Economy set to contract 2-4% in Q4 says report as lira’s plunge accelerates past 6.75 to the dollar.
Downgrades primarily reflect substantial rise in risk of a downside scenario, where a further negative shift in investor sentiment could lead to a curtailing of wholesale funding.
Investors badly need some clarity on economic policy moving ahead concludes analyst as lira resumes its slide.
Sum has expanded since start of year, now stands at TRY1.01tn.
With analysts warning that a recession is ahead, sentiment falls to the lowest level seen in four and a half years.
With political and economic challenges far from resolved, currency loses more than 3% by late afternoon.
Analyst says it’s still “very early to gauge whether there has been an economic hit” although indicators suggest financial conditions haven’t tightened to anywhere near degree they did during 2013 “Taper Tantrum”.
As economic turmoil takes a heavy toll, gunshots are fired at US embassy and Erdogan says outside forces are trying to bring the “Turkish people to their knees”.