Qatar will invest $15 billion in Turkey, Turkish news site NTV reported Wednesday, citing Turkish officials. The news followed a meeting between Turkish President Recep Tayyip Erodgan and Qatar's Sheikh Tamim bin Hamad Al Thani earlier in the day.
The Turkish lira spiked to a session high versus the U.S. dollar and the euro in response. The past few trading days have been dominated by Turkey's spiraling currency crisis, which is underpinned by its high current account deficit, foreign currency-denominated debt and high inflation.
While market participants have been calling for interest rate hikes to stave off further lira weakness, Erdogan has been steadfastly against higher rates, which exacerbated the selloff.
One dollar last bought 5.9910 lira down 5.9%, while the euro fetched 6.7720 lira down 6.1% from Tuesday. The iShares MSCI Turkey ETF was last up 3.9%.