ISTANBUL: The lira weakened more than 1% against the dollar on Wednesday ahead of a key policy decision by the US Federal Reserve that would draw more funds out of emerging markets, and also over prospects of another Turkish interest rate cut on Thursday.

The lira weakened 1.4% from Tuesday's close to 14.6 against the US currency by 0614 GMT. It has lost 49% of its value so far this year.

Volatile Turkish lira slides again after record dive