Annual consumer price inflation stood at 11.76pc in July, while the central bank's policy rate is 8.25pc, leaving real interest rates negative for lira depositors.
A surge in coronavirus cases across several U.S. states and some data pointing to an economic recovery losing steam pushed the dollar index down 4.1% in July, its biggest monthly percentage fall in a decade.
The U.S. dollar had its worst month in a decade in July but began August with a bounce, pushing as high as $1.1695 per euro on Monday, 1.8% above last week’s two-year low.