TURKISH ECONOMIST EXPECTS USD SALES IF USD RISES OVER 1.6 TL

ISTANBUL (A.A) - 24.05.2010 - The head economist of a Turkish investment firm said on Monday that she was expecting USD sales if one USD rose over 1.6 Turkish liras (TL).
Nurhan Toguc, the head economist of Ata Yatirim, said if one USD climbed over 1.6 TL, it would be an "extreme increase".
"In such a case, USD sales may rise but we do not think it may be over 1.65 TL," Toguc told AA correspondent.
One USD was bought at 1.565 and sold at 1.569 TL in Istanbul as markets opened on Monday.
Toguc said developments regarding China would be significant for the global economy, and some circles expected devaluation of Chinese yuan.
"However, China is signaling that it will not resort to monetary tightening," she said.
Toguc said those developments had a positive effect on Asian markets and Turkey, also Istanbul Stock Exchange (ISE) could recover as a reaction to last week's decrease.
"In coming days, we have to expect a downward movement in the stock exchange. If the stock exchange manages to stay over 45,000 there may be some upward movements," she said.
Toguc underlined importance of June's G20 summit for markets, and economists would see measures to be taken regarding Europe in that meeting.
"Also, uncertainties about a possible early election in Turkey should be eliminated," she said.
Toguc said interest rates could also have a rising trend, and forecast the lowest and highest interest rates of bond between 9 and 11 percent.
The economist said projections regarding developing economies were still good, and defined this week as a week of reaction.
Toguc said the United States would make public consumer confidence index on Tuesday, and the United States had 50 percent trade connections with Europe.
Also, Europe had 46 percent trade connections with Turkey, Toguc said.
Toguc also said every country and region was affecting each other, and negative news could cause harsh sales in the United States.