Turkish Lira Hits Lowest Level since May

The Turkish lira fell to its lowest levels since mid-May on Friday, after rating agency "Fitch" said that the country was still facing foreign financing risks and that the monetary easing cycle was nearing its end after inflation jumped more than anticipated.

The currency, which hit a record low on May 7, was 6.865 TRY against the dollar to close the week, after sliding to 6.88 TRY in trading late in the day.

Earlier on Friday, data showed that inflation jumped more than expected to 12.6% year-on-year in June, to wash away more than the central bank's goal and push analysts to forecast higher interest rates.

Lira Dropped 13% this year

Last week, the bank unexpectedly suspended a one-year easing cycle in the face of a 13% drop this year in the lira and depletion of the country's foreign exchange reserves and relatively high external liabilities.

Fitch added there were significant negative risks to its expectations that Turkey's balance of payments (BOP) would stabilize in the second half of the year, noting that the external pressure remains Turkey's main credit point of weakness.