The lira has hit a series of record lows beyond 8 to the U.S. dollar this year, but has recovered some ground since Agbal was named governor and delivered the rate hike.
The rouble rose about 0.3pc to hover at three-month highs against the dollar, also supported by hopes that a working COVID-19 vaccine would speed up a global economic recovery next year.
Russia's rouble dipped 0.3pc after service sector activity shrank for a second straight month in November, while South Africa's rand retreated after private sector activity expanded at a slower place.
The lira strengthened 1.1pc by 0830 GMT after Turkey's central bank said it had scrapped a rule that nudged banks to ramp up cheap lending, following last week's large interest rate hike.
The lira sank 0.7pc to an all-time low of 7.9389 to the dollar, weighed by concerns over possible US sanctions, the Caucasus conflict and uneasy ties with the European Union.
The lira tumbled to 7.85 against the dollar, slumping for a third straight session and erasing gains from late last week following a surprise interest rate hike by the central bank.
Although raising rates by 200 basis points during a global pandemic and slump is unusual, analysts welcomed the Central Bank of Turkey’s (CBT) response in the face of rising inflation.
Concerns over Turkey's depleted FX reserves and sharply negative real interest rates have left the lira among the world's worst performers this year, down 22pc.
In response to the volatility, the central bank has halted cheap credit lines and on Thursday it funded the market at a simple rate of 10.96pc via a 20 billion lira repo that used traditional bids.
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.
The lira has lost some 12pc of its value this year due to the impact of the coronavirus crisis and amid concerns over Turkey's depleted currency reserves and foreign financing needs.
The lira weakened as much as 1pc to 6.77 against the US currency a