Trump's latest boost to the dollar: U.S.-Turkey spat

Trump's latest boost to the dollar: U.S.-Turkey spat

Trump's latest boost to the dollar: U.S.-Turkey spat

Another tweet user named Melike wrote: "Buy Turkish lira instead of the dollar and drink Turkish coffee instead of American Starbucks coffee". Asked what the USA would view as progress in resolving the dispute, she replied, "Progress is having Pastor Brunson on a plane, coming back to the United States".

While still nominally allies, the US and Turkey's relationship is continuing to fall apart amid new economic penalties in the continued fight over an American pastor detained in Turkey.

Last week, a Turkish delegation returned from Washington with no movement on the detention of American pastor Andrew Brunson, who is under house arrest in Turkey over terrorism charges. The recovery also spilled into the bond market, with yields on 10-year local debt falling 28 basis points to 21.1 percent.

The announcement came after Qatar´s emir Sheikh Tamim bin Hamad Al-Thani held lunchtime talks with Turkish President Recep Tayyip Erdogan.

One Turkish court has rejected an American Christian pastor's appeal to be released from house arrest and for his travel ban to be lifted, but an upper court is yet to rule on the appeal, his lawyer told Reuters on Wednesday.

His detention has soured relations with Washington, with US President Donald Trump doubling aluminium and steel tariffs for Turkey in punitive actions against Ankara's refusal to release Brunson.

Administration sources says further sanctions against Turkey are under active consideration.

'The import duties were increased on some products, under the principle of reciprocity, in response to the US administration's deliberate attacks on our economy, ' Vice President Fuat Oktay wrote on Twitter.

The currency strengthened some 3 percent against the dollar on August 16, trading at around 5.75 per dollar, hours before Turkey's treasury and finance minister were scheduled to reassure global investors about the economy. Ankara more than doubled the tariff on USA rice to 50%, increased the USA coal tariff to 14% from 10% and more than tripled the tariff on cars to 120%.

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The United States was the fourth largest source of imports to Turkey previous year, accounting for US$12 billion, according to International Monetary Fund statistics.

National Security Adviser John Bolton met at the White House on Monday with Turkish ambassador Serdar Kilic, but the discussion reportedly did not result in any substantive progress. Turkey's exports to the United States, its fifth-largest export market, were US$8.7 billion.

White House press secretary Sarah Sanders said the USA had seen "no evidence that Pastor Brunson has done anything wrong".

Brunson's charges include spying for the PKK listed as a terrorist group by both the USA and Turkey and the Fetullah Terrorist Organization (FETO).

Turkish government officials are concerned, but the country's tourists have taken advantage of the plunging currency to snap up luxury goods at stores like Chanel and Louis Vuitton.

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

After Turkish President Recep Tayyip Erdogan's appeal to boycott USA electronic products on Tuesday, Turks started to raise their voices in social media by sharing the list of the US items from fast food to clothing brands to be boycotted.

Erdogan has called on Turks to exchange their dollars for lira in order to shore up the domestic currency.

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