According to reports, Turkey’s lira fell for the first day, after Moody’s Investors Service reduced Japan’s debt rating, covering up hopes generated by expectations that the U. S. Federal Reserve might announce extra asset purchases.

Also, lira dropped by 0.6% and traded at 1.7793 for a dollar at Istanbul, after the previous day’s 0.9% gain, making it the second-worst performer today amidst over 20 emerging-market currencies that are tracked by Bloomberg.

Fatih Keresteci, a strategist at the Turkish unit of HSBC Holdings Plc, stated: “The expectation that Federal Reserve Chairman, Bernanke may hint a new monetary expansion is affecting the market positively, but Japan’s downgrade has trimmed this optimism”.

However, Moody’s Investors Service cut Japan’s credit rating using one step, as they cited ‘weak’ prospects for growth, which will make it challenging for the government to control the largest public debt burden in the world.

Hence, Turkish markets is said to closed from mid-day on the 29th of August through the 1st of September, owing to the religious holiday as people may not want to take the risk to buy, as a result of probable negative developments in the holiday.

Moreover, yields from the two-year benchmark bonds increased and traded by 0.01 % point more, to 7.90%, as revealed by Turk Ekonomi Bankasi index of the securities.