The U.S. dollar hit a two-week high against the Turkish lira Monday, with one dollar rising in value to 2,3455 Turkish liras.

The dollar started the trading day at the 2.3313 level, but then rose higher on declining global risk appetite and mounting anticipation of an interest rate hike at the Federal Reserve Monetary Policy Committee meeting on Jan. 20.

The markets are probably trying to price in a possible rate hike of 25 to 50 basis points, analysts say. 

Analysts forecast possible resistance levels for the dollar at the 2.35 and 2.37 levels; support levels are predicted at 2.32 should the dollar sink against the Turkish currency.

Anticipation for a rate cut in Turkey intensified after President Recep Tayyip Erdogan last Friday strongly urged Turkey's Central Bank to cut interest rates as soon as possible given that oil prices continue to fall.

Interest rates are a matter of debate in Turkey, with government officials repeatedly criticizing the central bank's tight money policies as limiting economic growth.

The central bank insists on maintaining high interest rates until it sees clear signs of improvement in the inflation outlook.

Anadolu Agency