Investors outside of Turkey need to pay attention to the recent plunge in its currency to an all-time low versus the US dollar, as the country burns through its foreign-exchange reserves, analysts said.

One US dollar fetched as many as 7.37 lira on 7 August, according to FactSet, amounting to a record low for the Turkish currency against the greenback. The lira has since bounced off the low, trading near 7.20 to the dollar in recent trade. The dollar is up more than 21% versus the currency in the year to date.