Turkish lira sinks to new record low amid possible US sanctions | Al Arabiya English

Turkey's lira touched a fresh record low against the dollar on Wednesday, hit by investor unease over possible US sanctions, fraught ties with the European Union and the ongoing Caucasus conflict.

The lira hit a record low of 7.87 against the US currency, weakening from a close of 7.8050 on Wednesday. By 1000 GMT it stood at 7.8550.

It has lost 24 percent of its value this year on concerns over the central bank's depleted forex reserves, costly interventions in the currency market, and geopolitical issues.

Concerns over possible US sanctions resurfaced after Bloomberg reported on Tuesday that Ankara would begin testing the Russian S-400 missile defense system.

Tensions between Ankara and the EU appeared to rise after President Tayyip Erdogan said on Tuesday decisions at an EU summit last week over disputes including maritime claims in the eastern Mediterranean had been insufficient to resolve disagreements.

Erdogan and a Turkish Cypriot leader also announced on Tuesday the partial reopening of a Cypriot resort abandoned since the 1974 invasion by Turkey. This drew condemnation from Greece and the Greek Cypriot government.