Turkish lira weakens to 5.86, USA warns of more sanctions

Cryptocurrency Market Loses $43 Billion in Five DaysCryptocurrencyAltcoin News By Osato Avan Nomayo Last updated Aug 13 2018

Cryptocurrency Market Loses $43 Billion in Five DaysCryptocurrencyAltcoin News By Osato Avan Nomayo Last updated Aug 13 2018

In return, President Recep Tayyip Erdogan signed a decree to raise tariffs on American imports including cars, alcohol and tobacco.

The US president announced on Twitter last week that he had authorized a doubling of steel and aluminum tariffs on Turkey, stating that relations between the two North Atlantic Treaty Organisation allies "are not good at this time!"

He also recalled that Pakistan's next prime minister Imran Khan supported Turkey in the recent crisis with the U.S. "This is regrettable and a step in the wrong direction".

The pastor row is one of several between the North Atlantic Treaty Organisation allies, including diverging interests in Syria and USA objections to Ankara's ambition to buy Russian defense systems, that have contributed to instability in Turkish financial markets. A popular benchmark of emerging market stocks is near bear-market territory while India's rupee is around record lows.

The lira's drop in value is certain to further fuel inflation, which is already near 16 percent.

Qatar pledged to invest $15 billion in Turkish financial markets and banks amid the massive collapse of its currency. The currency picked up 6 percent and strengthened briefly at just under 6 to the dollar. "The fundamentals of the Turkish economy are robust and Turkey will emerge stronger from this process", Ibrahim Kalin wrote.

China has spoken out in support of Turkey following the threat of additional U.S. sanctions. Turkey's exports to the United States previous year amounted to $8.7 billion, making it Turkey's fifth-largest export market. United States officials maintain there is no credible evidence against Brunson, and the Trump administration has negotiated for weeks to secure his release.

Brunson, a North Carolina native, was the pastor of a Presbyterian church in Turkey. A higher court is still to rule, his lawyer told Reuters.

The US has threatened to impose more economic sanctions on Turkey if it does not free a detained American pastor.

The US-Turkish economic war has led to unforgiving retaliations from both ends. On Aug. 14, he said Turkey would boycott USA electronic products.

Mr Trump's national security adviser, John Bolton, had issued a blunt warning to Turkish ambassador Serdar Kilic when he met him on Monday at the White House, an administration official said on Thursday. Also helping the currency were moves by Turkey this week to gain favor with European countries, including releasing two Greek soldiers and an Amnesty International human rights campaigner from prison.

Copper CMCU3 rose 1.54 percent to $5,890.50 a ton, after having confirmed a bear market on Wednesday when it closed 20.9 percent below its recent high reached on June 7.

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