ISTANBUL: The Turkish lira slid more than 4% against the dollar in thin and volatile trading on Monday, nearing the record lows touched last week when President Tayyip Erdogan reaffirmed his low-rates policy despite wide criticism.

The lira weakened as far as 12.85 by 0613 GMT, from a close of 12.25 on Friday. Liquidity was low with wide bid-ask spreads, much as the trading was last week.

Turkish lira edges back from record lows in early trade

Last Tuesday the currency hit a record low of 13.45 after Erdogan defended the central bank move to slash its policy rate to 15%, despite inflation of 20%.