The Turkish lira recovered to 4.28 against the U.S. dollar on Wednesday following news of an economy summit chaired by President Recep Tayyip Erdoğan to be held in Ankara, after having traded at a record low of 4.37.

However, analysts said the three-week long rally for the U.S. currency, in which it has reversed several months of weakness, showed little sign of abating.

Meanwhile, the Central Bank of the Republic of Turkey (CBRT) announced that it decided to boost the volume of its daily foreign exchange deposits auction to $1.5 billion to give extra support to the Turkish lira.

"The daily amount of foreign exchange deposits against Turkish lira deposits auctions has been increased from $1.25 billion to $1.5 billion," the bank said in a statement.

The bank said the maximum outstanding deposit amount in auctions may reach up to $7.5 billion, from the current level of $6.25 billion.

It also updated the calendar of Turkish lira-settled forward foreign exchange sale auctions to be held in the second quarter.

The auction calendar was given on the Central Bank's website.

"During this period, the maximum total amount of forward foreign exchange sale position may increase from its current level of $5.3 billion to $7.1 billion," it said.

The developments come a day after Trump pulled the United States out of an international nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies. Global uncertainty is topped with Turkey's upcoming elections on June 24, high inflation rates and worries on fiscal discipline ahead of the elections.

Turkish lira has been the worst performing currency amid developing economies in 2018.