Turkish lira has hit a new record low on Monday at 2.67 against the US dollar, which had fallen to 2.65 earlier on the same day following expectations that the FED would lower interest rates.

Analysts said that that increasing dollar strength was the principal driver behind the decline, not only of the Turkish lira, but also of other emerging markets' currencies.

"The markets are beginning to price in the expected interest rate hike by the Federal Reserve," explained Christin Tuxen, senior analyst at Danish bank Danske Bank. "We expect the dollar to continue to strengthen in the short term."

Tuxen said that the dollar was likely to reach parity with the euro within a few months.

Some analyst also attributed the slide of the lira to pre-election jitters, as Turkey will hold general elections on June 7.