Erdogan urges Turks to support Lira as Trump doubles tarrifs on metals

Erdogan warns of campaign against Turkey as lira plummets

Erdogan warns of campaign against Turkey as lira plummets

President Donald Trump announced that the USA has doubled aluminium and steel import tariffs on Turkey, fixing them at 20 percent and 50 percent respectively.

The tensions with Washington have, for investors, underscored Turkey's authoritarian trajectory under Erdogan.

The mere fact that the US would impose sanctions on Turkey - a stalwart North Atlantic Treaty Organisation ally for decades during the Cold War - has increased uncertainty about the future in Turkey.

The lira plunged to as low as 6 against the United States dollar on Friday, a day after a Turkish delegation returned from talks in Washington with no apparent solutions to their simmering crisis. Relations used to be based on strategic interests, but more recently, they've been dominated by discord over alliances in Syria's civil war, Ankara's strengthening ties with Moscow, and its uneasy position within North Atlantic Treaty Organisation.

More evidence that emerging currencies were having a bad day came from Russian Federation, where the ruble dived again on Friday and is now down five percent since the USA on Wednesday hit Russian Federation with new sanctions over its alleged involvement in a nerve agent attack in Britain.

Turkey's sovereign dollar-denominated bonds tumbled with many issues trading at record lows.

"I would say we would define progress as Pastor Brunson being brought home", Nauert said.

The dollar rose as exposure to Turkey could impact European banks and spark a domino effect as people begin to pull out of those banks and into US assets, said Gregan Anderson, macroeconomic strategist at brokerage Bulltick LLC.

In modern economies, central banks are meant to be independent of governments to make sure they set policies that are best for the economy, not politicians. "Don't heed them", Erdogan said (via CNBC).

Ankara's rocky relations with Washington took a further hit as President Donald Trump lobbed fresh salvoes via Twitter against Turkey, plunging the sagging Turkish lira to new lows against the dollar.

Mr Erdogan also remained defiant, as he urged the Turkish people to exchange foreign currency or gold for lira.

"This is a domestic and national struggle".

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

A money changer counts Turkish lira banknotes at a currency exchange office in Istanbul, Turkey August 2, 2018.

Turkish President Recep Tayyip Erdogan said in a speech that the drop was part of a "campaign" led by foreign powers.

He railed against "those waging economic war" against Turkey. Inflation increased 16 percent in July, and Erdogan has insisted that interest rates not increase.

'The price of the food that I buy increases day by day, the fuel that I put in my auto to distribute lunches is more expensive, but I can not raise my prices from one day to the next, ' she said. The tech-heavy Nasdaq composite was down 83 points, or 1.1%, poised to end an eight-day winning streak.

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