Turkish lira rebounds after Qatar pledges $15 billion

Turkish lira

Turkish lira

US Vice President Mike Pence also renewed his threats to Turkey on Wednesday, warning that he and Trump would "stand firm" until Brunson is released.

Trump, who doubled steel and aluminum tariffs on Turkey, said the steel tariffs have kicked in the aluminum tariffs will take effect soon.

Erdogan also moved to strengthen ties with Germany, Turkey's biggest economic partner by far, accounting for about 37 billion euros ($42 billion) in bilateral trade past year.

Treasury Secretary Steven Mnuchin said additional USA sanctions are ready if Turkey refuses to release an American pastor whom the Trump administration says is illegally detained.

"The tariffs that the United States placed on Turkey were out of national security interests".

The decree said the move brought tariffs to 50 percent on imports of U.S. rice to 140 percent on hard alcoholic drinks like spirits, 60 percent in leaf tobacco and 60 percent on cosmetics.

The lira hit a record low against the dollar on Tuesday.

"The tariffs from Turkey are certainly regrettable and a step in the wrong direction".

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In an interview Wednesday with Anadolu Agency, Qatar's Ambassador to Turkey Salem bin Mubarak Al-Shafi said: "The state of Qatar is always proactive in supporting its Turkish brothers".

Moves by the central bank to ensure Turkish banks have liquidity and a planned conference call by Turkish Finance Minister Berat Albayrak, who is Erdogan's son-in-law, on Thursday have gone some way to reassuring investors.

The currency strengthened some 2 percent against the dollar, trading at around 5.85 per dollar, hours before Treasury and Finance Minister Berat Albayrak was scheduled to update global investors about the economy.

Additionally, Russian Foreign Minister Sergei Lavrov on Tuesday visited Ankara, where he said Moscow has been exploring for some time using national currencies to settle bilateral trade deals with Turkey and other countries.

President Erdogan has accused the U.S. of trying to "bring Turkey to its knees through threats over a pastor".

In another high-profile case, a Turkish court ruled on August 15 to release from jail Taner Kilic, the local chair of Amnesty International, a researcher from the rights group said. "We have other partnerships and alternative markets".

"I think the dollar is strengthening as a result of diverging monetary policies", said Oliver Pursche, Chief Market Strategist Of Bruderman Brothers In New York.

Relations between the two countries had deteriorated as Erdogan consolidated power after the failed coup, prompting disputes that led Germany to withdraw troops from Turkey and a long-running diplomatic standoff over a jailed German journalist.

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