Turkish lira trades near record lows after last week's rate cut

ISTANBUL: The Turkish lira firmed slightly early on Monday from the all-time low it hit against the dollar at the close on Friday, a day after the central bank unexpectedly cut interest rates and fuelled worries about monetary policy.

The lira firmed to 8.8725 against the dollar at 0442 GMT from Friday's close of 8.8995. Its previous weakest level was 8.88 in early June.

On Thursday, the Turkish Central Bank slashed its key interest rate by 100 basis points to 18%, despite headline inflation of 19.25% last month, triggering a slide in the lira's value.

After a slide, Turkish lira steadies ahead of rate decision

After a currency crisis in 2018 and a series of smaller selloffs, the lira has shed two-thirds of its value in five years, eating into the earnings of Turks who have also faced double-digit inflation for most of that period.