The Turkish Lira surged early on Monday in reaction to the news that Turkey’s ruling AK party won the national elections on Sunday.
President Recep Tayyip Erdogan won victory after his setback at the polls five months ago.
The Turkish lira jumped on Monday morning by as much as 3.1 per cent against the dollar after the results emerged, but by 6.10am local time the currency had slipped back to a gain of 1.9 per cent.
In other news, the Caixin manufacturing PMI improved in October to 48.3, from 47.2 in September. Economists had feared a print of 47.6, according to the consensus forecast.
A score below 50 suggests the sector shrank and this monthly reading has now been below that threshold for eight consecutive months.
However, the official manufacturing PMI released a day earlier unexpectedly shrank for a third straight month in October.
The official Purchasing Managers’ Index (PMI) was at 49.8 in October, the same pace as in previous month and lagging market expectations of 50.0.
This raised fears that the economy may be cooling further in the fourth quarter despite a raft of stimulus measures.
AUD/JPY and NZD/JPY moved lower after Sunday’s weaker China PMI. USD/JPY opened with a gap lower on Monday and fell to 120.30 from Friday’s 120.60.
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