ISTANBUL: The Turkish lira weakened to a record low of 29.4 against the dollar on Wednesday, bringing its losses in 2023 to 36% and sustaining a slow and steady decline in the latter part of the year.

The lira was 0.2% weaker at 29.3985 against the dollar at 1142 GMT after touching the all-time low of 29.40.

Turkiye hikes rates by 250 pts to 42.5% with end in sight

The government has implemented a policy U-turn since President Tayyip Erdogan won re-election in May, abandoning an unorthodox low interest rate policy in favour of tightening.

The lira subsequently weakened sharply in the summer as authorities loosened the leash on the currency, before the declines slowed down in the final months of the year.