ANKARA

Turkish markets made a comeback on Wednesday afternoon after the Borsa Istanbul and Turkish lira saw sharp losses in the early trading hours following the surprise victory of Donald Trump in the U.S. presidential elections.

The U.S. dollar versus Turkish lira rate witnessed a historic high of 3.3041 early morning after Trump’s victory started to factor in global markets.

The Borsa Istanbul tanked 1,806.10 points, or 2.37 percent to open at 74,561.69 points, amid late projections indicating the Republican candidate’s victory.

Despite the unexpected outcome that shook markets around the world, the BIST 100 index reacted positively after the first shock, regaining 1,057 points of losses it suffered at the open of the market to reach 75.618 points by 2.30 p.m. local time (1130 GMT), or 0.98 percent below the previous day’s close.

The Turkish lira, which was severely hit by the election outcome, started to recover in the afternoon as well when the exchange rate eased below 3.19 by 2.30 p.m. local time (1130 GMT).

Destek Investment Research Director Murat Tufan predicted a change in monetary policies following the historic poll result. “With the presidency of Donald Trump, monetary policies of central banks will change,” Tufan said.

He suggested the new era under Trump might lead to capital inflows in emerging economies as anticipation of a rate hike from the U.S. Federal Reserve goes down following the election result.

However, Tufan warned this might not be true in the longer term due to declining risk appetite and appreciation that might be seen in currencies of emerging economies.