ISTANBUL: The Turkish lira was trading at 5-1/2-month lows on Tuesday as fears of a hawkish shift in the US Federal Reserve's policy stance hit emerging market assets.
Shares in Bank Asya fell 10 percent to 0.89 lira, a record low, amid uncertainty over its future.
The bank's shares fell 20 percent on Monday as trading resumed after a suspension of more than a month due to uncertainty regarding its ownership.
The lira fell to 2.2203 against the dollar by 0641 GMT from 2.2133 late on Monday.
Emerging markets worldwide have suffered in the last week as investors re-assess the likely timing and speed of rate hikes by the Fed. This has boosted the dollar and US Treasury yields.
The Fed begins a two-day policy meeting on Tuesday.
Turkey is susceptible to global liquidity conditions due to its large current account deficit. "While the Fed is getting ready for a rate hike, Turkey is on the negative side in terms of its economic cycle.
We are worried that the country has significant fragilities due to its high inflation and relatively high current account deficit," said Fatih Keresteci, a strategist at HSBC.
The main share index fell 0.21 percent to 77,766.59, compared with a 0.34 percent drop in the emerging markets index.
The benchmark 10-year government bond yield rose to 9.32 percent from a previous close of 9.27 percent.
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