Turkey and the USA are now experiencing rocky relations following Washington's imposition of sanctions on Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul for not releasing American Pastor Andrew Brunson, who faces terrorism charges in Turkey.
It traded in a range of 6.86-6.9441 in Asia.
The lira has lost more than 45 percent of its value this year.
On Sunday, speaking to political supporters Erdogan said "the aim of the operation is to make Turkey surrender in all areas, from finance to politics".
"We are once again facing a political, underhand plot. With God's permission we will overcome this", Erdogan told his party members. "When we have so many experienced people, leaving the entire economy to the son-in-law created insecurity", he added, referring to Mr Erdogan's decision to name his daughter's 40-year-old husband Berat Albayrak as minister of a newly combined treasury and finance ministry on July 9.
Moves to ease Turkey's economic woes have failed to stop market turmoil as the country's row with the USA deepens.
Investors have rushed to the safe haven Swiss franc, which hit a one-year high of 1.1288 franc per euro on Monday and last stood at 1.1324.
Erdoğan also said that the USA stabbed Turkey in the back, three days after he sought to bolster ties with Russian President Vladimir Putin.
"American pastor Andrew Brunson has been held since October 2016 on charges of terror and espionage, and if convicted, could face a jail term of 35 years". Trump has described his detention as a "total disgrace" and urged Erdogan to free him immediately.
Washington earlier this month already imposed sanctions on senior Turkish officials over the Brunson case, angering Erdogan and prompting retaliatory measures by Ankara.
In Trabzon, Erdogan confirmed media reports that Washington gave Onal's delegation a deadline for the release of Brunson.
Brunson, a USA citizen, and Turkish resident for over two decades, was arrested in Turkey on charges of terrorism and espionage.
The route of hiking rates now appears cut off to the nominally independent central bank which is ready to use virtually any policy tool save this one, raising fears Erdogan has the bank under his influence. Erdogan has ruled out an interest rate hike, which can slow economic growth, but analysts say one is urgently needed to stabilize the currency.
Turkey's relations with United States and Germany have been strained by its decision to arrest several citizens from both countries.
They would be in addition to the tariffs of 25 per cent on steel and 10 per cent on aluminum that the US imposed in March for imports from a variety of countries.