ISTANBUL, Aug 25 (Reuters) - Turkey's lira fell to a new record low on Tuesday, remaining vulnerable despite central bank efforts to tighten credit via back-door measures, as tensions simmered between Ankara and Athens over disputed offshore resources.
The lira TRYTOM=D3 weakened more than 0.3% to 7.4035 against the dollar by 1411 GMT, from a close of 7.38 on Monday. Its last intraday record low was 7.4 on Aug. 18.
The central bank has adjusted its funding taps to raise borrowing costs even while it has kept its policy rate steady at 8.25%. On Monday the bank provided 1 billion lira funding through its late liquidity window set at 11.25%.
Adding to investor concerns over Turkey's depleted FX reserves and costly currency market interventions, the threat of European Union sanctions loom as tensions between Turkey and Greece have risen in the eastern Mediterranean Sea.
Germany on Tuesday called for dialogue to avoid a catastrophic military confrontation between the NATO members.
(Writing by Ezgi Erkoyun; Editing by Jonathan Spicer)