Lira plummeting further into crisis ensures a brutal conclusion to eventful week

Thomson branded summer holiday brochures

Thomson was bought by Tui's predecessor company in 2000 Credit Rui Vieira PA

President Trump has doubled USA tariffs on Turkish steel and aluminium, as the precipitous fall of the Turkish lira accelerates.

President Trump turned a simmering conflict with Turkey to a boil, tweeting that he would double tariffs on Turkish steel and aluminum.

But the trade minister, Ruhsar Pekcan, said: "We implore President Trump to return to the negotiating table". A 20 percent fall in exports would only reduce GDP by 0.1 percentage point or less per year in the 19 countries that use the euro currency.

The lira has been falling on worries about Erdogan's influence over monetary policy and worsening relations with the United States. Trump wrote. "Aluminum will now be 20% and Steel 50%".

Turkey's lira plummeted as much as 18 percent on Friday as worries about President Tayyip Erdogan's influence over monetary policy and worsening USA relations snowballed into a market panic.

"If there is anyone who has dollars, euros or gold under their pillows, they should go exchange it for liras at our banks", he said Friday.

A plunge in the Turkish lira rocked global equities and emerging markets on Friday and fear of more turmoil sent investors scurrying for safety in assets like the yen and USA government bonds.

Ankara and Washington have been at odds over the detention of the American evangelical pastor Andrew Brunson on terrorism charges, a matter that Trump has discussed directly with Turkish President Recep Tayyip Erdogan over the phone, The New York Times reported.

USA investors shifted focus from strong corporate earnings to the rout in Europe, sending the major stock-market indexes lower. The U.S. responded by slapping sanctions on Turkey and threatening more.

But the shop owners say that change never came and that they still pay their rent in dollars.

"Our relations with Turkey are not good at this time!" he added. Turkey has mostly done that to itself - until, that is, Trump started tweeting.

Turkey's woes have been aggravated by investor worries about the economic policies of Erdogan, who won a new term in office in June with sweeping new powers.

Turkey's embattled lira on Friday hit new record lows against the USA dollar and euro, losing over seven percent in value as strains with the United States showed no sign of abating and fears grew over the exposure of European banks.

"US and Turkey are breaking up", Mr Cook told The National, recommending that Washington instead focuses on "how the tanking of the Lira affects other emerging market currencies, and moving to contain the contagion".

The lira tumbled about 10 per cent on Friday to another record low as investors worry about Erdogan's unorthodox economic policies and U.S. sanctions.

The lira's slide came after a USA delegation from Washington, D.C., left Turkey without making progress toward the release of Andrew Brunson, an American pastor detained by Erdoğan's government since 2016.

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

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

Analysts suggest Erdogan could have Washington in mind, given Ankara is demanding the extradition of US -based Turkish cleric Fethullah Gulen, who is blamed for masterminding the botched 2016 military takeover.

Latest News