The Turkish lira weakened to an all-time low of 2.50 against the U.S. dollar on Monday, which is perceived as a psychological barrier.

The dollar has been trending upwards in the past days because of rising anticipation of interest rate cuts by the Turkish Central Bank, and the comments in the U.S. Federal Reserve minutes which noted the solid growth of the U.S. economy.The lira lost value to trade at more than 2.40 to the US dollar on Tuesday after Turkey's Central Bank's (CBRT) announced that it would not decrease the interest rate due to inflation data below its expectation.