Turkish lira slips to historic low against US dollar

ANKARA (AA) - Turkish lira slipped to a historic low against the U.S. dollar Friday as anticipation of a rate hike from the Federal Reserve saw the American currency appreciate across the globe.

The currency of the world's largest economy strengthened considerably recently with the U.S. dollar index, which measures strength of six major currencies against the dollar, hitting a high of 98.50 points in the last eight months.

Turkish lira dipped to 3.1270 against the U.S. dollar at 0830 GMT.

Analysts believe the drop was largely due to the rising geopolitical tension in its region, especially in Iraq and Syria, besides the surging likelihood of a rate hike from the U.S. Federal Reserve, which would limit the capital flow to emerging economies such as Turkey.