U.S. President Donald Trump said he's authorized doubling some metals tariffs on Turkey, citing poor relations with the North Atlantic Treaty Organisation ally amid an escalating conflict over its detention of an American pastor.
He did not offer an explanation for the tariff hike, which raises the tariffs to 20 percent on aluminum and 50 percent on steel, though there are a couple of possibilities.
South Africa's rand weakened beyond 14 against the U.S. dollar for the first time since a credit downgrade in November as Turkey's economic crisis sent investors fleeing from emerging-market assets.
The Treasury Department targeted Turkey's justice and interior ministers with financial sanctions last month after the government refused to allow Brunson to return to the U.S.
Donald Trump has today announced massive increases to tariffs against Turkey as its currency the lira continues to plummet.
"There are several campaigns being carried out [against Turkey]".
On Thursday Ergodan said Turkey will withstand the economic pressure.More news: Browns trading former first-round pick Corey Coleman to Bills
More news: Charges Against New York Rep. Chris Collins Complicate Re-Election Bid
More news: Google sets down ground rules for notch support on Android P
Even before Trump's announcement, President Tayyip Erdogan told Turks to exchange gold and dollars for lira in order to fight "an economic war". The central bank, officially independent, appears to have heeded Erdogan and has not raised rates when many - including the International Monetary Fund - said it should have.
Investors piled into "safe" government debt, with German yields hitting three-week lows and the yield on the benchmark US 10-year Treasury note falling to 2.88822 percent. We are working hard.
The Russian ruble this week plummeted to its lowest level against the dollar since 2016 as the United States said it was imposing more sanctions on Moscow over a chemical attack in the UK earlier this year.
New Finance Minister Berat Albayrak - Mr Erdogan's son-in-law -acknowledged that the central bank's independence was critical for the economy, promising stronger budget discipline and a priority on structural reforms.
The lira fell 7% against the dollar to 5.9655 on Friday morning after hitting an all-time low earlier in the session. They include BBVA, UniCredit, and BNP Paribas, and the exposure to those lenders is being closely watched, the Financial Times reported. "I used to sell 100kg of meat, but eventually I started to sell 10kg in the same period of time", he said.
What caused this steep drop in the price of the lira? It was eight lira in 2006.
Cenk Mutlu, who has owned a small jewellery shop in Istanbul's Grand Bazaar for decades, has been forced to display signs which read "discount" and "big sale". "It could serve as a template for further tariff actions against China if the renminbi depreciates further relative to the dollar, even if that depreciation were mainly a reflection of the relative strength of the US and Chinese economies".
But the shop owners say that change never came and that they still pay their rent in dollars.