Turkish lira gained ground against the U.S. dollar on Thursday following Central Bank's move to raise interest rates.

The dollar/lira exchange rate fell over 3 percent compared to the previous close, to trade at 6.0151 by around 2 p.m. local time (1100GMT).

On Wednesday, the USD/TRY exchange rate stood 6.3530 as of 5 p.m. local time (1400GMT). 

Turkish Central Bank on Thursday hiked its one-week repo rate by 625 base points.

In a statement, the bank's Monetary Policy Committee said the policy rate was increased to 24 percent, up from 17.75 percent.