The Turkish has lira pulled back from yesterday's record low this morning, helped by the country's central bank's liquidity measures and news of a planned conference call in which the finance minister will seek to reassure investors.
The lira, which closed at 6.9 per dollar yesterday, has weakened 45% this year, hit by worries over President Tayyip Erdogan's calls for lower interest rates and worsening ties with the United States.
The weakness of the Turkish currency has rippled through global markets.
Its drop of as much as 18% on Friday hit US and European stocks as investors fretted about banks' exposure to Turkey.
Dollar-denominated bonds issued by selected Turkish banks continue to fall today, although sovereign bonds have steadied.
The lira stood at 6.54 against the dollar shortly before 9am Irish time, up around 5% on the day.
Relations between NATO allies Turkey and the United States are at a low point, hurt by a series of issues from diverging interests in Syria, Ankara's plan to buy Russian defence systems and the detention of an American pastor, Andrew Brunson.
The White House yesterday said US national security adviser John Bolton met Turkey's ambassador to the United States to discuss the detention of Mr Brunson, who is on trial in Turkey over terrorism charges.
US President Donald Trump had asked for his immediate release.
Traders said news that Finance Minister Berat Albayrak will hold a conference call with up to 1,000 investors to discuss the economy might also have helped support the currency.
"I think the investor call Albayrak has scheduled has helped the lira firm," said TEB Investment strategist Isik Okte.
"I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt."
"The concerns are ongoing in the market but it is possible to mention a limited optimism for the first time in a while," a foreign exchange trader said.
Bankers yesterday said the central bank would meet banks' lira liquidity needs at the overnight rate of 19.25% - 150 basis points above the benchmark weekly repo rate - a move they said could be interpreted as a small, covert rate hike.
Analysts say the crisis has been a long time coming and reflects Turkey's refusal to raise interest rates to curb double-digit inflation and cool an overheated economy.
