On the downside, a breach of 5.2202 (10-day SMA) would open the door to 5.0105 (21-day SMA) and finally 4.7305 (low Jul.23). Earlier, it had crashed some 12 per cent through the 6.00 level for the first time in history, trading at one point at more than 6.20 lira per dollar.
Versus the euro on Friday the lira lost 7.0 per cent to trade at 6.8.
Relations between the two North Atlantic Treaty Organisation allies have taken a turn for worse amid dispute over the detention in Turkey of U.S. evangelical pastor Andrew Brunson on terrorism charges.
Turkish President Recep Tayyip Erdogan has lashed out against a shadowy worldwide "interest rate lobby" which he suggested was "campaigning" to harm Turkey's economy, after the lira fell more than 14 percent overnight.More news: Tottenham make history by completing no summer signings
In the meantime, Erdogan is making an effusive call to savers to covert FX to Liras, adding that there is no rush to call for a rate hike.
Turkey's benchmark one-week repo rate is now 17.75%.
Erdogan wants banks to lend cheap credit to fuel growth.
After winning the election in June, he appointed his son-in-law as chief of a revamped finance ministry. Raising the rates has been heavily opposed by Erdogan.More news: Australia's most populous state '100 percent' in drought
And even if eurozone exports to Turkey fell through the floor, previous experience has shown that European companies are "pretty quick in identifying and switching to new markets. Now all of a sudden a currency crisis in Turkey could trigger another dimension to their own financial problems".
The report said that the situation is not yet seen as "critical" but Spain's BBVA, Italy's UniCredit and France's BNP Paribas are regarded as particularly exposed.
Erdogan responded by announcing to freeze the assets in Turkey of United States ministers of "justice and interior", in tit-for-tat response to USA sanctions.
The president did nothing to reassure markets with comments overnight that the pressure on the lira was due to what he described as a "variety of campaigns" and appearing to play down the magnitude of the crisis.More news: Everton Complete Double Swoop for Barcelona’s Mina & Gomes
Erdoğan also said Turkish people should not worry, saying "We also have measures to guard against all negative possibilities".
- China bans 'Winnie the Pooh' film over comparisons to Xi
- Nunes Explains Why Rosenstein Has Not Been Impeached In Leaked Audio
- Petition calls for LeBron James to be U.S. Secretary of Education
- Brad Pitt: I've given Angelina Jolie $9m since split
- Baker Mayfield shines during his Browns debut
- United planning Milinkovic-Savic bid
- Kim Kardashian West plans to give her daughter Chicago middle name 'Noel'
- Exiting 'Fox & Friends' host could be headed to 'The View'
- First Lady Melania Trump's Mom & Dad Become US Citizens
- Israel bombs Gaza, Palestinians fire rockets as UN seeks ceasefire