The foiled military coup in Turkey on Friday hit stocks hard as they declined 5 per cent over the weekend.
The decline was Turkey's largest in over 2 and a half years.
"A bit of political risk premium has to be repriced in the FX and bond market, this has already happened to some extent. In the near-term the political risks will be reflected in
the CDS and bond markets," said Murat Toprak, EM strategist at HSBC.
The lira gained 2 per cent on the dollar but failed to outweigh the more than 4 per cent declined on Friday night.
The decline in stock value, however, barely spread to other emerging market countries.
South Africa's rand gained 2 per cent and Russia's rouble 0.5.
Read more at Reuters.