The Turkish lira weakened to a record low beyond 27.236 against the U.S. dollar on Tuesday, due to inflationary pressure and a strengthening dollar, bringing its year-on-year losses to more than 31%.

President Tayyip Erdogan's support for a low interest rate policy despite high inflation triggered a currency crisis in late 2021 and pushed price rises above 85% last year.

The central bank, which has stopped intervening in the forex market to prop up the lira as of June, has reversed course and carried out two months of aggressive hiking.

The lira has shed some 24% of its value since the bank's policy change.