ANKARA: Turkey’s embattled lira on Friday hit new record lows against theUS dollar and euro, losing over six per cent in value as strains with theUnited States showed no sign of abating and fears grew over the exposure ofEuropean banks.

The lira was trading at 5.90 to the dollar, a loss on the day of 6.5 percent. Earlier, it had crashed some 12 per cent through the 6.00 level forthe first time in history, trading at one point at more than 6.20 lira perdollar.

The lira has now lost over a third of its value against both the dollar andthe euro this year, with the currency battered by both concerns overdomestic economic policy and the political situation.