The Turkish lira gained nearly 3 percent compared to its Monday's close at 1.65 levels.



The finalization of a foreign bank's dollar demand also helped the lira to recover against the dollar, Barbaros Ozuyilmaz, bond desk manager in Istanbul based ABank told hurriyet.com.tr.



"A foreign bank's U.S. dollar demand, which pushed the currency up to 1.70 levels from 1.50 levels against lira, finalized on Friday. I see this as the reason for the dollar's easing against the lira," he added.



The 1.70 level is important and a new sell off will be seen if this level is reached again, Ozuyilmaz also said.



Most Asian stock markets rebounded Tuesday after several days of steep declines as investors snapped up beaten down shares like Honda and Samsung. Japan's benchmark Nikkei 225 index jumped 6.4 percent after early falling below 7,000 points to fresh 26-year lows