The U.S. dollar declined sharply against the Turkish lira early on Monday following Friday's report from Standard & Poor's ratings agency which upgraded Turkey's outlook to "stable" from "negative."

The dollar/lira rate, which soared to historic high of 3.1740 last week, declined to below 3.1500 in the early hours of Monday.

This decline was as much as 0.75 percent compared to last week's record high.

The euro, which is also prominent in the Turkish market alongside the dollar, declined 0.92 percent against the lira to 3.4850 at 0710 GMT on Monday.

Analysts say investors are focused on the outcome of this week's U.S. presidential election, describing it as the main determinant in guiding market sentiment in light of important economic data releases.