ISTANBUL: Turkey's lira hit a record low on Friday as concerns over global inflation, an early election and a possible ratings downgrade marked the latest milestone in a years-long depreciation that has dogged the big emerging market economy.

The currency - by far the worst performer among emerging markets this year - weakened as far as 8.6125 versus the dollar, outstripping its November intraday low of 8.58.

Peers have faired better weathering a recent tide of rising US bond yields that has prompted some investors to abandon Turkey, seen as more vulnerable to shocks due to policy mis-steps and diminished central bank credibility.

The currency was at 8.5775 against the US currency at 14:15 GMT, ahead of a review by S&P Global that could downgrade its Turkey credit rating. It also logged a new low against the euro on Friday.

The lira has shed more than half its value in the last three years as Erdogan has ousted three central bank governors and his government has used unorthodox polices that analysts say have left the economy more vulnerable to crises.

Foreign currency reserves plunged in the last two years as state banks sold about $128 billion in dollars to stabilise the lira, leaving Turkey potentially vulnerable if companies and banks have trouble meeting high foreign debt obligations.