The Turkish lira fell to its lowest level ever against the dollar in morning trading on Monday. The Turkish lira's losses so far this year have risen to more than 28%, to continue its decline after an unexpected interest rate cut last week.
The price of the Turkish lira reached 18.4440 against the dollar as of 4:53 am GMT, down from its level at the close of last Friday at 18.4280, while the lira fell earlier to a record level of 18.4450.
Turkey's central bank unexpectedly cut its benchmark interest rate by 100 basis points last week to 12%, citing an economic slowdown despite inflation rising to more than 80% last August.
This reduction came in contrast to analysts' expectations, as markets had expected the Central Bank of Turkey to maintain the interest rate at 13% without making any change.
Data showed that the annual inflation rate in Turkey rose to its highest level in 24 years at 80.21% in August 2022, after the Turkish Central Bank decided to cut the interest rate unexpectedly last month, but the data remained below expectations.
