Turkish lira hits 6-month high against US dollar

The Turkish lira rose to a six-month high against the U.S. dollar on Wednesday after the world's largest economy showed weaker-than-expected inflation and retail sales figures.

The exchange rate dipped to as low as 3.49 for the first time in six months.

The dollar has just hit a one week-low against a basket of currencies as markets expect the Federal Reserve to be more cautious about further interest rate raises this year.

According to the U.S. Commerce Department, retail sales declined by 0.3 percent in May, the biggest drop since January of last year.

Inflation across the U.S. dropped by 0.1 percent last month after having risen by 0.2 percent in April.