Turkey's main stock index declined 0.4%, while the banking index was down 0.77%.
Piotr Matys, senior emerging markets forex strategist at Rabobank, said the global coronavirus concerns, compounded by Turkey's military involvement in Syria, had hit the currency.
"It is really difficult to be optimistic and what has happened in South Korea and Italy over the past few days was like a reality check for the markets that the virus is spreading," he said.
"Sentiment is still quite fragile and I think that it is way too early to declare that the worst is over for the lira and other EM currencies," Matys said, adding the decline in US stocks could spell trouble for the lira.