Turkey currency crashes as Trump doubles metals tariffs

Lira historical lows

President Trump has authorized the doubling of steel and aluminum tariffs on Turkey amid heated tensions over detainment of an American pastor.

Trump said via a tweet that the tariff on aluminium imports will be increased to 20 per cent and the tariff on steel imports will be raised to 50 per cent as the Turkish Lira "slides rapidly downward against our very strong Dollar!"

The currency slid almost 8 percent in relation to the dollar to a record low of 6.59 shortly after Trump announced the increase on metals duties on Twitter.

Bank shares across Europe fell and the euro slipped to its lowest since July 2017 as the Financial Times quoted sources as saying the European Central Bank was concerned about European lenders' exposure to Turkey. "But if the United States can't handle relations with Turkey ... then a further deepening of relations with Moscow is an option".

On Friday, Erdogan asked Turkish citizens to sell off their gold and dollars and exchange them for the lira, in an attempt to prop up the currency.

A plummeting Turkish lira sent ripples through global equities and emerging markets on Friday, as rising fears of a wider fallout sent investors scurrying for the safety of assets such as the yen and US government bonds.

Turkish President Tayyip Erdogan told a rally Friday that his country would not yield to what he called bullying and blackmail.

The lira, which has lost a third of its value this year, fell on his comments and was trading at around 6.05 to the dollar after he spoke, almost 9 percent weaker on the day. U.S. stocks were also rattled.

The tweet is another salvo in the growing dispute between Turkey and the U.S.

Manchester United vs Leicester City - predicted starting XI
I think one defensive mistake and probably the linesman could help him and give a free-kick against Leicester . The manager pointed to those players who, alongside Pogba, had little training due to post-World Cup breaks.

"In order to bring solutions to the existing problems, Turkey will always side with diplomacy, dialogue, good will and mutual understanding", he added. The tech-heavy Nasdaq composite was down 83 points, or 1.1%, poised to end an eight-day winning streak.

As President Erdogan continues to exert an iron grip on the government, economy, and people of Turkey, and the specter of a Turkish debt crisis continues to loom, the country's economy and currency are apt to remain under heavy pressure. That is because a trade war would make it even harder for Turkey to get the dollars it needs, so the lira would be even less valuable.

Jay Sekulow, an attorney for Trump who is also representing Brunson's family, told talk-show host and political commentator Sean Hannity's radio program on Friday: "We're close to getting a resolution in that case".

While there was no statement from the Turkish side, US State Department spokesperson Heather Nauert said wide-ranging conversations had been held.

While Turkey and the United States disagree over a host of issues, the most pressing disagreement has been over Brunson and the detention of other U.S. citizens in Turkey.

The lira fell 7% against the dollar to 5.9655 on Friday morning after hitting an all-time low earlier in the session.

The lira has lost around 20% of its value in the last 24 hours. The U.S. recently hit two high-ranking Turkish officials with sanctions after the Turkish government refused to release imprisoned Christian pastor Andrew Brunson.

Treasury and Finance Minister Berat Albayrak - who is Erdogan's son-in-law - was scheduled later on Friday to outline a "new economic model".

Related News:



Most liked

Latest Idris Elba As James Bond Rumor Was Completely 'Made Up'
Twitter user @wordtoJude felt this news was a long time coming - "IVE BEEN ASKING FOR THIS FOR YEARS". However, Elba once insisted that no one is genuinely considering him to play 007.

PTI nominates Imran as its PM candidate
PTI spokesman Fawad Chaudhry claimed that allies and reserved seats will take the party tally to 174 seats in the National Assembly.

Jose Mourinho 'not confident' of deadline day signings
In football you need time to work and players on the pitch to work and we didn't have that until now. The tactics to be changed in Championship Manager you can just press a button.

Rare fire tornado caught on film during United Kingdom industrial blaze
The "firenado" swept across the fields near the factory, as the fire sent dark plumes of smoke into the sky on Monday. The fire involved stacked plastic pallets, which were ordinarily used for making plastic crates for supermarkets.

Cleveland Browns: Preseason Week 1 instant reactions
He hit 11 of 20 passes for 212 yards, didn't turn the ball over and converted two fourth-down plays with his feet. QB controversy in Cleveland? Last season coach Hue Jackson led the Browns to a ideal 4-0 record in the preseason.

Cam Newton Gets In Heated Altercation With Kelvin Benjamin
The Buffalo Bills opened their first preseason game of 2018 with second-year quarterback Nathan Peterman under center. When Benjamin left Newton hanging, Newton asked for privacy and had an apparent argument with his former teammate.

China denies entry to Disney film featuring Winnie the Pooh
No reason has been given for the decision, but it's believed to be part of a nationwide clampdown on references to author A.A. The only other Disney film this year to receive a no-go from China was sci-fi film " A Wrinkle in Time ".

Everton Agree Deal to Sign Mina From Barcelona
Mina could thus, be a top signing for Everton , depending on how quickly he can settle in the Premier League . Moments later they also confirmed that Portugal global Gomes would join the Premier League side on loan.

Ben Stokes trial: England cricketer told ‘shut up or I’ll bottle you’
The trial before Judge Peter Blair QC, the Recorder of Bristol, is expected to last between five and seven days in courtroom one. Stokes added he "felt under threat of immediate attack from both these men and I did what I did only in order to defend myself".

Koreas prepare for summit as North asks USA to ease sanctions
It has urged Washington to take reciprocal steps including officially declaring an end to the war and dropping sanctions. The North noted that they returned remains of US soldiers who fought in the Korean War to the USA last week.

Red Dead Redemption 2 gets long-awaited gameplay footage
In a 6 minute trailer, there's a lot to take in, and the next gameplay video promises to focus on missions and activities. Before you click on the video below remind yourself that everything you'll see is actual gameplay footage.

Everton Complete Triple Deal For Bernard, Mina, and Andre Gomes
Barcelona said they reserve the right to buy Mina back, while Gomes has cost Everton a £2m loan fee. Everton always was a big option for me, especially after speaking with the coach, Marco Silva.

Michael Moore Releases Trailer For Anti-Trump Film "Fahrenheit 11/9"
Like " Fahrenheit 9/11 ", which tackled the impact of George W. Moore, an Academy Award-winning director, is helming the film. Fahrenheit 11/9 lands in theaters September 21.

Hamas vows retaliation after Israel kills two gunmen
The incident comes as the United Nations and Egypt continue to try to broker a deal for a lasting ceasefire between Israel and Hamas, which dominates Gaza.

Saudi-led coalition claims deadly Yemen attack
State Department spokeswoman Heather Nauert said the USA was "concerned" by reports of an attack resulting in civilian deaths. The missile was sacked from the rebel-held Yemeni province of Amran towards the Saudi city of Jizan, the coalition said.