Istanbul - Coalition talks between Turkey's ruling Justice and Development Party (AKP) and the far-right collapsed on Monday, increasing the likelihood of snap polls later this year.The far-right Nationalist Movement Party (MHP) met with the AKP leader Prime Minister Ahmet Davutoglu for more than two hours, but the session ended without a deal. The Turkish lira has been in decline versus the dollar and euro, in part over concerns about political stability. The lira hit a record low of 2.86 to the dollar on Monday.The Islamic-rooted AKP failed to secure enough seats in parliament in the last election in June to govern alone for the first time since 2002 but it has not been able to agree on a coalition with any of the three other parties in parliament.The three opposition parties together could technically have formed a government but the MHP refused to work with the pro-Kurdish Peoples' Democratic Party. President Recep Tayyip Erdogan, a founder of the AKP, may call early elections from August 23 onward if no government is formed. The country is currently facing renewed conflict between the state and the armed Kurdistan Workers' Party.