(Bloomberg) -- Turkey’s lira dropped to the weakest on record after a smaller-than-expected increase in interest rates on Thursday.

The currency slipped 2.6% to 24.20 against the dollar as of 2:35 p.m. in Istanbul. Turkey’s central bank hiked its main one-week repo rate by 650 basis points to 15%, below the median estimate in a Bloomberg survey for an increase to 20%.

READ MORE: Turkey Vows Gradual Rate Rises After Smaller-Than-Forecast Hike

--With assistance from Robert Brand.

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