The Turkish lira fell to a record low curtailing talk of a possible interest-rate increase in the country. The currency weakened as much 1.8 percent to 2.18 percent against the dollar by mid-afternoon on Thursday – its lowest for over 35 years.<br /><br />The benchmark stock index lost 2.7 percent with one analyst predicting no end to the depreciation pressures.<br /><br />The fall comes as the investigation into a corruption scandal has increased pressure on Prime Minister Recep Tayyip Erdogan. In his end of year address the PM spoke of foreign-backed elements posing a threat to the people of Turkey. <br /><br />He has named a new cabinet after police detained businessmen close to the government and the sons of three ministers earlier this month.<br /><br />Erdogan purged 70 officers connected with the inquiry and blocked a second investigation into projects promoted by him.<br /><br />Throughout the holiday period there have been demonstrations calling for Erdogan who has held office for 11 years to step down. <br /><br />President Abdullah Gull in a New Year’s message emphasised the need for an independent judiciary free from pressure from any side.
