ISTANBUL: The Turkish lira weakened beyond 8.9 against the dollar on Wednesday and neared the record low hit last week after an unexpected interest rate cut, which fueled concerns about monetary policy credibility.
The dollar was boosted by worries over surging energy prices and global inflation, and pending tightening by the US Federal Reserve.
The lira stood at 8.9050 at 0645 GMT, off an earlier low of 8.9250, It was near the record marker of 8.9490 touched on Sept. 29 amid worries about President Tayyip Erdogan's influence on the central bank.
Turkish lira edges back from record closing low
The currency has weakened 16% to the dollar this year and 7% since early September, hit by dovish messages from Central Bank Governor Sahap Kavcioglu and a 100 basis-point rate which last week provided stimulus long sought by Erdogan.
The easing comes against a background of rising inflation, with annual consumer price rises hitting 19.58% in September, its highest in two-and-a-half years, according to data released on Monday.
Market attention is now focused on central bank investors' meetings scheduled on Thursday, with more clues sought on the outlook for interest rates.
Some banks have issued new forecasts in the wake of the latest rate cut, with Barclays and Standard Chartered predicting that the central bank will cut its policy rate to 15% by year-end from a current 18%.
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