Turkish Lira Plummets to Record Low After Interest Rate Hike

The Turkish lira dropped 2.5% against the dollar on Thursday after the central bank raised the key interest rate by 650 basis points to 15%. This move represents a departure from President Recep Tayyip Erdoğan's policy of lowering interest rates, though it was below expectations. The lira hit a record low of 24.25 against the dollar, experiencing a rapid decline that took less than half an hour following the announcement of the interest rate decision. This increase in the lira's losses against the U.S. currency brings its decline this year to approximately 23%.