Turkish lira weakens 0.5% against dollar

The Turkish lira weakened some 0.5 percent against the dollar on Wednesday as concerns over rampant inflation were stoked by President Tayyip Erdogan’s pledge to continue cutting interest rates.

The lira stood at 16.8550 against the U.S. currency at 0411 GMT, when compared to Tuesday’s close of 16.7650, slipping towards a record low it hit on Dec. 20. The currency has lost some 22 percent of its value so far this year.

Speaking after a cabinet meeting this week, Erdogan said Turkey will not raise interest rates but rather continue cutting them in the face of high living costs.