ISTANBUL: The Turkish lira strengthened 0.8% to below 7.5 against the dollar on Monday, its strongest level since mid-September, building on gains last week when the central bank raised its key interest rate a bit more than expected.

The lira firmed to 7.4950 in thin trade due to end of year holidays. On Thursday, the central bank hiked its one-week repo rate to 17% from 15%. Even after recent gains, the lira has weakened 21% to the dollar this year.