The Turkish lira regained its early losses against the U.S. dollar on Wednesday trading at 1.68 levels after rising above the critical 1.70 levels in early trade as the investor move towards low-risk assets in emerging countries continued. (UPDATED)


The lira traded at 1.7045 in morning trade losing more than 1 percent its highest level since Nov. 24 2008.

The Turkish lira has lost some than 9 percent against the U.S. dollar since the beginning of 2009 adding to the some 25 percent fall recorded in 2008.

Moody's Investors Service said Tuesday that the recession in emerging European countries was likely to be worse than most other countries in the world and place both the local banks' and their Western parents financial strength ratings under pressure.

The International Monetary Fund (IMF) already offered aid to the region’s weakening economies including Latvia Hungary Serbia and Ukraine.

"The general trend for the Turkish currency against the U.S. dollar is already down because the recent data being announced regarding growth is bad. The risk perception rose again oil prices declined and the price of gold increased. This reduced confidence in the markets and led to a shift towards the dollar which is seen as a safe port" hurriyet.com.tr quoted Sevgi Aytekin manager at the Linkleri Üyelerimiz Görebilir.based Abank currency desk.

This placed the currencies of all emerging countries under pressure she added.

Investors in Turaaa also expect the drawn out Linkleri Üyelerimiz Görebilir.talks to conclude in an agreement as recent figures reveal the country’s economy is also facing contraction inline with the global downturn.

Turaaa's growth rate declined to 0.5 percent in third quarter of 2008 and is expected show a contraction for the fourth quarter. Industrial output in the country plunged 19 percent in December while the unemployment rate in the fourth quarter rose to 12.3 percent year-on-year the highest level since 2005.

Turaaa’s expected Linkleri Üyelerimiz Görebilir.deal is being delayed as the government is said being reluctant because of the spending cuts demanded by the Fund ahead of the upcoming bi-elections in March. An Linkleri Üyelerimiz Görebilir.team left Turaaa at the end of January and the government has yet to invite the officials back for more talks