Turkish lira strengthens

ANKARA, Jan 16 (Reuters): Most emerging market currencies firmed against the dollar on Wednesday, with Turkey's lira strengthening ahead of a central bank rate decision, while stocks in the developing world notched a six-week peak.

Turkey's central bank sets borrowing costs later in the day, with a Reuters poll predicting the key rate will remain at a formidable 24 per cent despite moderating inflation.

The lira was 0.8 per cent firmer after hitting its strongest level against the dollar in more than a week.

Tim Ash, emerging markets senior sovereign strategist at BlueBay Asset Management, said he did not think the bank would be "that naïve as to pre-emptively cut rates at this stage".