The Turkish lira hit a new low of 2.6540 against the U.S. dollar on Monday Anadoly Agency reported
The lira moved to 2.6540 from above 2.6510 from early to late Monday morning.
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.