At 0457 GMT, the lira stood at 5.8060 against the dollar, weakening from a close of 5.7540 on Friday. After a currency crisis wiped nearly 30% of the lira's value in 2018, it has fallen 9% this year.

"Looks like another flash crash out of Asia," Timothy Ash, head of emerging market research at Blue Bay Asset Management, wrote on Twitter.

"(It) comes amid a new found weakening trend, driven by fallout from Argentina, concerns about global volatility and nervousness over Turkish monetary policy mix," he said.

Asian shares sank on Monday as the latest salvo in the Sino-U.S. trade war shook confidence in the world economy and sent investors steaming to the safe harbours of sovereign bonds and gold, while slugging emerging market currencies.

The lira has been hit by investor concerns over the possible impact of rapid loan growth after a central bank decision to lower required reserves limits and boost returns for lenders with more than 10% loan growth.

The currency has also been pressured by tensions in Syria since Ankara said last week that an air strike on a Turkish military convoy in northwest Syria had killed three civilians.