A woman holds a Turkish flag as she attends a protest at Taksim Square in Istanbul June 20, 2013 (Photo: AP)
Turkish shares plunged nearly seven percent on Thursday after the US Federal Reserve signalled it may begin winding down its economic stimulus measures later this year.
The Istanbul stock market's main index closed 6.8 percent lower as Turkish lira dropped sharply to 1.9 against the US dollar following the Fed's indication that it may soon begin reducing its bond-buying programme.
The money injected by the Fed's programme has been credited with boosting stock markets around the world, and the prospect of a cutback has sent equities tumbling in recent weeks.
Turkish stocks also remain vulnerable to the impact of the nearly three-week old anti-government protests, which have recently evolved into passive demonstrations after deadly street clashes with the police during the first two weeks.
The protests, which spread nationwide after a police raid against a peaceful sit-in in Istanbul on May 31, caused Istanbul shares to fall more than 10 percent one day.
The protests pose one of the biggest challenges to the ten-year old government of Prime Minister Recep Tayyip Erdogan.
The clashes have left four people dead and nearly 8,000 wounded, according to Turkey's Medical Association.
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