Turkish lira rebounds after Qatar pledges $15 billion

  • Turkish lira rebounds after Qatar pledges $15 billion

Turkish lira rebounds after Qatar pledges $15 billion

Turkey's biggest mobile phone importing companies have cancelled their iPhone orders as Turkish citizens join a move to boycott US products.

The lira has weakened 35 percent against the dollar this year as the deterioration in ties between the North Atlantic Treaty Organisation allies fuelled losses driven by concerns over President Tayyip Erdogan's influence over monetary policy.

Qatar will make $15 billion of direct investment in Turkey, Qatar's leader said on a visit to Ankara on Wednesday, said Turkey's presidential spokesman.

BNP Paribas/TEB strategist Erkin Isik said Trump's comments and worries over further sanctions were likely to keep markets under pressure on Friday.

He later tweeted: "Turkey has taken advantage of the United States for many years".

Qatar poured funds into the country the same day Turkey doubled tariffs on some US imports, such as cars, alcohol and tobacco, one day after President Recep Tayyip Erdogan called for a boycott of iPhones.

Erdogan also spoke with French President Emmanuel Macron, a day after talks with German Chancellor Angela Merkel and a $15 billion pledge of support from Qatar.

The two North Atlantic Treaty Organisation allies have traded tit-for-tat sanctions over the pastor's house arrest.

He said: "We put sanctions on several cabinet members".

The country's currency, the lira, has fallen sharply against the US dollar in recent weeks but rebounded after the aid announcement.

"We have stood together and will continue to do so", he said, making clear the high-level meeting was meant to communicate unequivocal support for Turkey at a critical juncture.

Ankara's central bank took actions to reinforce the currency on August 15 and squeezed the Turkish lira's liquidity from the market. "Our relations with Turkey are not good at this time".

Mr Trump has repeatedly asked for Brunson's release.

Andrew Brunson, an evangelical pastor from Black Mountain, N.C., shown in Izmir, Turkey, on July 25.

Mr Erdogan has said Turkey is the target of an economic war, and made repeated calls for Turks to sell their dollars and euros.

An Istanbul court allowed the release of Amnesty International's Turkey chair Taner Kilic Wednesday, who spent more than a year in jail over alleged links to the 2016 coup bid.