ISTANBUL - Turkey's lira fell to a record low against the U.S. dollar on Thursday, extending its losses after comments from a Federal Reserve policy maker which traders interpreted as ruling out prospects of the Fed extending a swap line to Ankara.

At 0711 GMT the lira stood at 7.2300 after hitting a record low of 7.25, beyond its previous weakest level of 7.24 in August 2018.

The lira has lost some 18% this year under pressure from the COVID-19 pandemic that has killed 3,584 people in Turkey, although spread of the virus has slowed in the last two weeks.

In a call with investors on Wednesday Finance Minister Berat Albayrak defended Ankara's policies in the face of a sharp currency sell off. Albayrak said Turkish reserves were more than adequate, participants on the call said.

A Fed policymaker - asked on Wednesday about extending swap facilities to Turkey and others in need - said the Fed already has lines with countries that have a relationship of "mutual trust" with the U.S., and the highest credit standards.

A Turkish foreign exchange trader said those comments helped weaken the Turkish currency. "We think pressure on lira will continue in the short term," the trader said.

(Writing by Ezgi Erkoyun; Editing by Tom Hogue) ((; +90-212-350 7051; Reuters Messaging:;))