ISTANBUL: Turkey's lira hit its weakest level against the dollar since April 30 on Wednesday on market concerns about Prime Minister Tayyip Erdogan's latest criticism of central bank policy and on emerging market weakness.
Erdogan said on Tuesday he hoped the central bank would cut interest rates further, criticising its stance and raising further concerns about political interference in monetary policy.
After falling to 2.1258 against the dollar, the lira had firmed back to 2.1215 by 0716 GMT but remained weaker than 2.1185 on Tuesday evening.
In announcing ratings actions on 11 Turkish banks late on Tuesday, ratings agency Moody's said the Turkish economy would grow 2.9 percent in 2015, compared to April's forecast of 3.0 percent.
Moody's forecast for 2014 growth remained at 2.5 percent. The government is expecting growth of 4 percent this year, although most economists see that as optimistic.
Turkey's 10-year benchmark bond yield rose to 9.25 percent from 9.16 percent on Tuesday. Turkey's 2-year benchmark bond yield tTR240216TA=IS ended at 8.43 percent in spot trade on Tuesday and rose to 8.51 percent in Wednesday dated trade.
The main Istanbul share index was down 0.44 percent at 78,475 points.
Turkey's annual inflation was relatively flat in May as the accumulated impact of Turkish lira weakness declined, the central bank said on Wednesday in its monthly report on price developments.
The bank was due to release the real effective exchange rate index for May at 1130 GMT.
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