The Turkish lira fell to its weakest since the end of January, down almost five percent against the dollar. It comes as emerging markets popularity with investors is ebbing. Political tensions have also played a part after a weekend raid by police on media outlets close to an opponent of President Recip Tayyip Erdogan.
Fears of further tension inflamed underlying concerns about Turkey’s large current account deficit.
Analysts believe it could prove a key test for the country as emerging markets try to cope with the sharp adjustment in oil prices and the prospect of the Fed tightening in 2015.