After the European Central Bank (ECB) took additional monetary measures, the Turkish lira on Friday strengthened to a three-and-a-half-month high against the dollar.

On Thursday, ECB President Mario Draghi announced new monetary easing measures, which saw the monthly bond purchasing program raise to 80 billion euros per month from 60 billion euros, along with considerable cuts in its interest rates. Following the ECB's decision, the lira strengthened to 2.8734 to the dollar, the lowest since Dec. 3, in line with appreciation seen in almost all emerging market economies.

Markets expect the ECB's decision to boost risk appetite in emerging economies, as cheap euros are likely to flow into markets such as Turkey where there is a high return potential for investments.