The Turkish lira weakened 5% against the US dollar on Friday after sharp surges during the week, Report informs with reference to the stock exchange data.
The Turkish currency rose to 11.83 lira from the previous close of 11.21 lira per dollar. Yesterday the lira strengthened by 15% after a record fall at the beginning of the week, the exchange rate for the first time since mid-November was at the level of 10-11 lira for the dollar.
Earlier, the Central Bank of Turkey decided to reduce the discount rate to 14% from 15%, which caused a sharp drop in the Turkish currency - on Monday, the dollar was exchanged for 18.4 lira.
The sharp strengthening of the lira began after Turkish President Recep Tayyip Erdogan's announcement of the new measures to counter exchange rate volatility. In particular, he said that the government will encourage deposits in lira, compensating depositors for losses due to exchange rate fluctuations.