Turkish Lira crash hits Japanese retailers - Nikkei Review

Turkish Lira crash hits Japanese retailers - Nikkei Review

Turkish Lira crash hits Japanese retailers - Nikkei Review

While even a widespread Turkish boycott would do little to dent United States economic interests, it shows Erdogan refusing to give in to market turmoil that's pushed borrowing costs to record highs and threatens to descend the nation into a financial crisis.

Tourists count their Turkish liras after exchanging foreign currency at a exchange shop in Istanbul, Aug. 13, 2018.

The lira has been tumbling as investors question whether the government of President Recep Tayyip Erdogan can cope with problems including the weakening currency and a diplomatic spat with Washington that has resulted in higher USA tariffs.

Erdogan, however, did not announce any government action towards a boycott.

Behind the scenes, however, diplomatic dialogue appears to have resumed.

On another day of turmoil on financial markets, the Turkish currency plunged to a record low against the pound, taking its losses this year to 43 per cent.

The move comes after the U.S. imposed sanctions on two Turkish ministers over the continued detention of an American pastor on terror-related charges, and President Donald Trump compounded the country's economic crisis by doubling steel and aluminium tariffs to 50% and 20%, respectively. Erdogan warned that the USA is putting decades-old alliances at risk and pushing Turkey to seek allies elsewhere.While diplomatic tensions rage, the currency rallied for the first time in a week as Turks cashed in dollar savings to take advantage of the huge slump in the local currency.

World stock markets rebounded on Tuesday as Turkey's lira pulled out of a recent nosedive and reassuring data from Germany helped offset the latest wobbles in China's giant economy.

The finance chief, Berat Albayrak is due to address hundreds of foreign investors on Thursday in a teleconference, the state-run Anadolu Agency said. Not only would this help contain inflation but it would also help support the lira.

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An American evangelical pastor, whose detention in Turkey has already caused an unprecedented deterioration in Ankara-Washington relations, has renewed his appeal to a Turkish court to release him from house arrest and overturn his travel ban.

Mr Brunson has denied charges of espionage, but faces up to 35 years in jail if found guilty.

"We're working to set up a call between the president and the president of Turkey to reaffirm our strong bond", she says.

European shares steadied after a two-day sell-off as concerns about contagion from Turkey's currency crisis eased.

Independent economists caution it would be hard to unseat the dollar as the top reserve currency as it is used widely in the global economy, for example to trade in oil and for commercial deals.

It's unclear what the USA trying to achieve by targeting an ally with whom it worked together in places including Somalia, Afghanistan and Kosovo. "Such policy can't be a basis for normal dialogue and it can't last long". On Tuesday Turkey announced a boycott on U.S. electronics in response. He renewed a call on Turkish citizens to convert their dollars into the local currency. "I believe in my nation", Erdogan vowed, the New York Times reported.

The interior ministry says it is launching the investigation to hush dissent amid the country's economic crisis.

Japanese currency traders, who tend to be contrarian, continued to buy the lira even as it lost value.

"Most of the products we sell come from overseas, the raw materials".

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