August 5, 2013 / 3:29 PM / 4 years ago

Turkish lira weakens after inflation accelerates in July

(Updates prices)

ISTANBUL, Aug 2 (Reuters) - The Turkish lira weakened against the dollar on Monday after annual inflation neared 9 percent in July, boosting the case for further tightening of monetary policy.

The lira was at 1.9333 to the dollar at 1430 GMT having hovered around the 1.9258 mark in the morning, before the July inflation data was released.

Consumer prices rose 0.31 percent month-on-month last month, in line with a Reuters poll forecast of 0.30 percent, for a year-on-year acceleration of the inflation rate to 8.88 percent from 8.30 percent in June, the Turkish Statistics Institute said.

The yield on Turkey’s 10-year bond barely moved, inching up to 8.92 percent from 8.91 percent late on Friday in quiet trade ahead of an extended holiday starting on Wednesday afternoon to mark the end of Ramadan.

The main Istanbul share index was up 0.24 percent at 74,211 points, slightly outperforming the wider emerging markets index which rose 0.14 percent. (Reporting by Dasha Afanasieva; Editing by Nick Tattersall and Stephen Nisbet)

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