Published: Sat, August 18, 2018
Markets | By Terence Owen

Turkish lira weakens as U.S. warns of new sanctions over detained pastor

Turkish lira weakens as U.S. warns of new sanctions over detained pastor

Brunson, an Evangelical pastor residing in the coastal province of Izmir, is standing trial in Turkey over terrorism charges.

The currency plunged to a record low of 7.24 per dollar at the start of the week as a worsening of relations between Turkey and the United States added to losses driven by concerns over President Tayyip Erdogan's influence over monetary policy.

It has lost almost 40 per cent of its value against the dollar this year, hit by both the diplomatic rift and investor alarm about President Tayyip Erdogan's influence over monetary policy.

US President Donald Trump Mr Trump announced on Twitter last week that he had authorised a doubling of duties on aluminium and steel imported from Turkey, putting unprecedented economic pressure on Ankara.

"We have more that we are planning to do if they don't release him quickly", Mnuchin said.

Trump prefaced Mnuchin's remarks by saying that Turkey had not been a very good friend to America.

"The Brunson case is a rallying call for evangelicals within the Republican base because you have a Christian pastor being held in a Muslim-majority country", Amanda Sloat of Brookings Institution told the newspaper.

The flailing Turkish lira rebounded slightly on Thursday, on the heels of Qatar's announcement that it would earmark $15 billion for deposits and investment projects to be made in Turkey. In response, Erdogan has called for a boycott of U.S. electrical goods while Ankara has sharply hiked tariffs on some United States goods.

Analysts say Turkey is also likely to seek a more dynamic economic relationship with China and Russian Federation, with whom ties have warmed considerably in recent years.

Meghan Markle's father, sister in tirade against royal family
It resulted in him not attending the wedding to walk his daughter down the aisle at Windsor Castle on May 19, something he later said he cried over.

Man United to appoint their first ever director of football
One the surface of things, it would appear that Jose Mourinho has put all of his eggs in a Paul Pogba shaped basket. " We thought maximum [he would play] 60 minutes, but he managed more than 80 ".

Canada can easily replace Saudi Arabian crude oil imports: economist
The majority of students who come to Canada from Saudi Arabia do so through the King Abdullah Scholarship Program. The ministry said it ordered the owner of the account to shut it down while investigations are completed.

The Wall Street Journal reported on Friday afternoon that Chinese and USA negotiators are drawing up a road map for their trade talks next week.

"It is a shame", Erdogan said in a speech on Saturday.

The Turkish lira was slightly lower on Friday after the U.S. warned Ankara should expect more sanctions over the detention of an American evangelical pastor.

"Release Brunson", Bolton told him, according to the official, who declined to be named.

The world's two largest economies are due to impose tariffs on billions of dollars of each other's goods on August 23, in addition to levies that took effect on July 6.

Tensions between Turkey and the United States have been on the rise as Trump has pressed for the release of the pastor.

However, analysts are calling for a sharp hike in interest rates - which Erdogan adamantly opposes because it will put a brake on economic growth. Ratings agency Standard & Poor's is also scheduled to release a review of Turkey's sovereign credit rating after the market close on Friday. He has been held in Turkey for two years and accused by local prosecutors of "terrorist" ties to the Islamist Gulen movement, which has been blamed for a failed coup in July 2016.

President Donald Trump doubled tariffs on Turkish metals exports to the United States last week prompting Turkey, which says it will not bow to threats, to raise tariffs on U.S. cars, alcohol and tobacco by the same amount on Wednesday.

Like this: