Turkish lira sees record low against dollar

By Bahattin Gonultas

ANKARA (AA) - The Turkish lira hit a new low against the U.S. dollar on Wednesday morning following the central bank's liquidity boost a day earlier.

Turkey's currency fell to a historic low of 3.8950 to the dollar in early Wednesday trading after starting the day at around 3.8220.

The central bank on Tuesday had cut the foreign exchange reserve requirement ratios for lenders as part of efforts to increase cash circulation in the country's economy. The bank also said it was monitoring excessive volatility in the markets and would take necessary measures to counter unhealthy price developments.

Wednesday's drop in the lira to the dollar is the latest record low to beset the currency since the new lira was introduced in a 2005 revaluation. It comes amid anxiety over proposed constitutional changes and heightened terror threats.