Lira slides nearly 8% amid investors' concern over policy actions

The lira tumbled almost 8 per cent against the dollar on Monday amid persisting investor concern over Turkey’s monetary policy, having surged more than 50 per cent last week after billions of dollars of state-backed market interventions.

The lira was also supported last week by a government move to cover FX losses on certain deposits. Under pressure from President Tayyip Erdogan, the central bank has slashed its policy rates by 500 basis points to 14 per cent since September.

It weakened to as low as 11.6 against the greenback on Monday before trimming losses to trade at 11.35 by 0800 GMT. “The