Turkey aims new tariffs at US as court rejects pastor's appeal

Turkey news: Erdogan rages at Trump 'economic warfare' over sanctions | Daily Star

Turkey issues retaliatory tariffs on US imports

Turkish President Erdo─čan (R) and Qatari Emir Sheikh Tamim bin Hamad Al Thani shake hands in this photo released by the Turkish presidential press service on August 15, 2018.

LONDON - Turkey's downtrodden currency, the lira, surged on Wednesday morning hours after the country's government hit back at what it believes are "deliberate attacks" against its economy by the USA, by levying significant tariffs against American goods.

"Remarkable turnaround", Tim Ash, Bluebay Asset Management senior emerging markets analyst wrote in a client note.

In a sign of improving ties to European Union nations, Kalin said Erdogan would hold telephone conversations with German Chancellor Angela Merkel later Wednesday and with Emmanuel Macron of France on Thursday.

Mr. Trump has repeatedly asked for Mr. Brunson's release, while Ankara said the decision was up to the court.

The pastor was released for house arrest on July 25. Erdogan has blamed the US for the fall of the lira, but refused to budge on Trump's demand for Brunson's release. One dollar now buys about seven lira, compared with less than four at the start of the year.

It was boosted after the Turkish banking regulator cut the amount of funds banks can use for currency swap trading, limiting the possibilities for speculating against the lira. "They are killing offshore lira liquidity to stop foreigners shorting the lira", he said.

Investors are anxious that about Erdogan's control over the central bank and his pressure to keep it from raising interest rates.

Brunson is at the center of a diplomatic spat between North Atlantic Treaty Organisation allies Turkey and the United States, which has helped trigger a Turkish currency crisis.

In London, the FTSE 100 was down 0.4 per cent by Wednesday morning. Investors continued to demand higher interest rates.

Markets weren't all rosy.

On Monday, the USA president signed a defense authorization act that notably prohibits the delivery of F-35 Joint Strike Fighter aircraft to Turkey if it buys Russia's S-400 air defense system. The recovery also spilled into the bond market, with yields on 10-year local debt falling 28 basis points to 21.1 percent.

Turkey doubled tariffs on some USA imports, including alcohol, cars and tobacco on Wednesday in retaliation for US moves, while the lira rallied further after the central bank's liquidity moves had the effect of supporting the currency.

The Turkish lira plummeted to a record low on Monday, losing almost 40 percent of its value since the start of 2018. "If you come at us with your dollars then we will find other ways to do business". "The administration is going to stay extremely firm on this", the official said. He said the country's banks and banking regulator "will take the necessary measures quickly".

The Kremlin said the same day that Russian Federation favored bilateral trade with all countries in their national currencies, rather than the dollar, but that the idea needed detailed work before being implemented.

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