Turkish lira hits new record low on rate cut expectations

Turkey's currency the lira hit a new record low against dollar on Thursday amid expectations that the central bank may cut interest rates as early as next week.
The lira hit a record low in value of 2.4184 to the dollar, worse than the previous record low in value of 2.4140 in mid-December.
Against the euro, the currency lost 0.7 percent in value to trade at 2.7225 lira to the euro.
The lira was also hit by Federal Reserve's upbeat outlook on the US economy and signals that it was on course to hike interest rates this year.
Turkey's central bank has been under pressure from President Recep Tayyip Erdogan to bring interest rates down to sustain growth ahead of general elections in June.
A year ago, the bank aggressively raised key rates to avert a major economic crisis following a steep drop in the value of the the lira.
Last week, it lowered the one-week repurchase rate to 7.75 percent from 8.25 percent, the first reduction in six months. But Erdogan is still pressing for further cuts.
On Tuesday, central bank governor Erdem Basci hinted that the rates might be cut during the monetary policy committee's next meeting, which has been brought forward by three weeks to February 4.
Prime Minister Ahmet Davutoglu on Wednesday welcomed the central bank's reduction in interest rates last week and said he expected the rates will be further lowered in the coming days.