USD/TRY: Turkish Lira hits fresh record low

• Lira's slide continues on Turkey's economic concerns and geopolitical tensions. 
• Washington expressed concerns about Turkey's plan to use the Russian defense system. 

Turkish lira (TRY) has declined to a record low of 7.8856 per US dollar amid tensions with Washington. 

On Wednesday, the US warned that it was "deeply concerned" due to reports Turkey is planning to test a Russian S-400 air defense system purchased from Moscow. 

Washington's comments have accelerated the sell-off in the lira. Over the past couple of months, the currency has been offered on fears of a full-blown balance of payment crisis in Turkey. 

The lira fell by over 1% on Wednesday and is now down a staggering 32.48% on a year-to-date basis. 

The 2020 loss is already the biggest annual decline since at least 2012.