ISTANBUL: Turkey's lira sank to an all-time low of near 11 to the dollar on Thursday before paring losses, ahead of a central bank meeting that is expected to cut rates further even as the currency falls sharply and inflation remains near 20%.

The lira stood 10.85 against the dollar at 0408 GMT, after earlier declining as much as 10.98, bringing its losses since Tuesday's close to more than 5.7%.

Turkish lira weakens to new record low beyond 10 against dollar

The currency's decline in recent weeks over concerns of further easing from the central bank were exacerbated on Wednesday by President Tayyip Erdogan's comments that he will continue his battle against interest rate "to the end".

The lira is down more than 32% against the dollar this year and its decline pushes prices higher in Turkey via imports.