Turkiye lira weakened 0.8 per cent to a record low on Thursday, extending its sharp drop from the previous session, which economists said was a sign of Ankara easing state controls on the forex market.

The unit recouped some of its losses by 0441 GMT on Thursday to trade at 23.33 against the dollar, after touching a record low of 23.39 overnight.

Turkish lira down 7pc in biggest selloff since 2021 crisis. In the previous session, the lira had recorded the biggest drop since a historic crash in 2021.