The Turkish Lira falls further despite the central bank's actions
Turkish stocks also hit the benchmark BIST 100 benchmark index down 4 percent, reaching the lowest level in the US dollar since early 2009.
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Lira has been hit by an increasingly bitter dispute between Ankara and Washington, which has raised concerns about Turkish high inflation and large current account deficits, as well as Turkish corporate foreign currency debts and general economic policy direction under President Recep Tayyip Erdogan.
Amid signs of emerging market outbreaks, South Africa's rand dropped by 10 percent to two low on Monday morning. It is the biggest one-day decline in a decade. The Indian rupee fell 1.1 percent, while the Indonesian rupiah lost 1 percent.
European financial stocks are also under pressure. BBVA Spain dropped 2.9 percent, while UniCredit jumped 2.2 percent. Both banks have a stake in Turkish lenders.
"The current level of exchange rate has no economic base," Erdogan said in a speech on Monday, when it threatened to punish "traitors" for spreading rumors of capital controls. "Turkey has a strong economic foundation and it will remain strong."
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