Lira Slides to Record, Yields Surge on Concern Over Bank Policy

The lira hit a record low against the dollar and yields surged after the central bank said it will stop lending at the benchmark interest rate on some days, raising uncertainty about monetary policy.

The lira weakened as much as 1 percent to 1.9191 and fell 0.9 percent to 1.9159 at 6:00 p.m. in Istanbul, increasing this year’s losses to 19.4 percent in the worst performance among more than 20 emerging-market currencies tracked by Bloomberg. Yields on benchmark two-year bonds jumped 27 basis points, or 0.27 percentage point, to 11.07 percent, a Royal Bank of Scotland Plc index of the securities showed, the highest level since July 2009.