The Turkish lira strengthened almost 3 percent to level at 4.54 against the U.S. dollar in early Asian trading on Monday as markets welcomed President Recep Tayyip Erdoğan's re-election on hopes of increased political stability.

The lira was trading at 4.54 to the dollar, a gain in value of 2.9 percent on the day. It was trading at 5.3 to the euro, a gain in value also of 2.9 percent.

After 4.68 parity closing on Friday in U.S. markets, the U.S. dollar/Turkish lira parity regressed about 2 percent after Turkish elections.

According to analysts, now that uncertainty in Turkish elections is over, the Turkish lira would gain even more strongly against the U.S. dollar.

Erdoğan garnered more than 52 percent of the votes with more than 98 percent of ballot boxes opened while his ruling Justice and Development Party's (AK Party) alliance with the Nationalist Movement Party (MHP) managed to win the majority in the parliament.