ISTANBUL, June 7 Turkey's lira weakened on
Wednesday after officials said parliament would fast-track
legislation allowing its troops to be deployed to a Turkish
military base in Qatar, fuelling concerns about an escalation of
the dispute in the Gulf.
The lira eased 0.73 percent to 3.5400 against
the dollar after officials from the ruling AK Party and the
nationalist opposition told Reuters about the planned
legislative step in support of Qatar.
Saudi Arabia, Egypt, the United Arab Emirates (UAE) and
Bahrain severed relations with Qatar and closed their airspace
to commercial flights on Monday, charging it with financing
militant groups. Qatar denies the allegation.
"The sides are becoming clear in the region. Turkey is in
the Russia-Iran-Qatar group," said one banker, who declined to
be identified. "That the sides have become so clear makes people
think tensions will increase."
The lira is little changed against the dollar so far this
year, making it one of the better performing emerging market
currencies against the greenback.
The main Turkish share index fell 0.56 percent to
(Reporting by Behiye Selin Taner; Writing by Daren Butler;
Editing by David Dolan)