Turkish lira weakens to new record low beyond 10 against dollar

ISTANBUL: Turkey's lira weakened 0.8% on Monday to a new record low of 10.075 against the dollar, as concerns of another rate cut from the central bank this week continued to weigh on the currency.

The lira has lost more than 25% of its value so far this year, mainly over concerns about monetary policy, given President Tayyip Erdogan's frequent calls for lower rates and his frequent changes to the central bank's leadership.

The central bank is expected to cut its policy rate to 15% this week, according to a Reuters poll, even though inflation remains near 20% and the lira has continued to depreciate, which in turn stokes prices via imports.

The lira's decline was recently also exacerbated by the dollar firming after higher-than-expected inflation data in the United States.