Breaking News
0

Turkey's lira firms after Pompeo says he expects talks on U.S. pastor

ForexSep 24, 2018 03:04PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Turkish lira banknotes are pictured at a currency exchange office in Istanbul

By Sarah Dadouch and Ezgi Erkoyun

ISTANBUL (Reuters) - Turkey's lira firmed more than 3 percent on Monday after U.S. Secretary of State Mike Pompeo said he expected discussions with Turkish officials this week over the fate of a U.S. pastor whose trial has strained relations.

The lira has tumbled 40 percent against the dollar this year, hit by concerns about President Tayyip Erdogan's influence on monetary policy and the diplomatic row with Washington.

U.S. President Donald Trump has slapped tariffs on Turkey over its trial of Andrew Brunson, an evangelical Christian pastor from North Carolina, who has lived in Turkey for more than two decades. He is facing terrorism charges, which he denies.

Pompeo told reporters in New York he expected talks with Turkish officials to take place this week to discuss Brunson's fate. Erdogan is visiting the United States this week for a United Nations meeting.

"Yes he could be released this month. He should have been released last month. And he should be released today in fact. We have talked to the Turks. They know the expectations," Pompeo told reporters in New York.

"Pastor Brunson and the other U.S. persons that are being held by Turkey all need to be released by Turkey and that needs to be done immediately," he added.

The lira firmed as far as 6.0575 against the dollar as of 1607 GMT, compared with Friday's close of 6.2900. It later weakened to 6.15 to the dollar at 1831 GMT.

Speaking to reporters in New York, Turkish presidential spokesman Ibrahim Kalin said the decision on Brunson would be made by the judiciary and urged everyone to respect the court's ruling.

"Obviously we want to have good relations with every country, including the United States, but we have to resolve the issues between the two countries through diplomacy," Kalin said.

"It's not just about Pastor Brunson, but a number of other issues, including the American support for the YPG in Syria, which is a concern for our national security."

Turkey considers the YPG militia a terrorist organization linked to Kurdish militants on its soil.

REBOUND SUSTAINABLE?

The sell-off in the lira has raised concerns about the impact on the broader economy and put particular focus on Turkey's banks. Ratings agency Fitch said on Monday that banks' foreign-currency liquidity risk had heightened significantly amid volatility and currency weakness.

The central bank this month hiked interest rates by 6.25 percent to stem inflation and put a floor under the currency. Last week the government rolled out a new economic program with lower growth estimates, although many investors have given it a lukewarm reception.

"If there is an attempt to improve relations with the U.S. then this would be the third important component that we need to expect this rebound in the lira to prove sustainable," said Piotr Matys, an emerging markets forex strategist at Rabobank.

"The other two important components are already in place. The central bank raised interest rate decisively and this was followed by the new economy program, which includes more realistic macroeconomic assumptions."

Brunson is one of several U.S. citizens who have been detained in Turkey in the aftermath of a failed coup in 2016, which Ankara blames on a U.S.-based cleric. Turkey has sought the extradition of the cleric, Fethullah Gulen. The United States has said it is a matter for the courts.

Among those jailed is a Turkish-U.S. citizen and former NASA scientist. Serkan Golge was visiting family in southern Turkey when he was arrested in the crackdown that followed the coup.

He plans to file an appeal to Turkey's top court after a lower appeals court reduced his sentence, his lawyer said last week.

Turkey's lira firms after Pompeo says he expects talks on U.S. pastor
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Muslum Guliyev
Muslum Guliyev Sep 24, 2018 12:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lira strengthens because of BIST100 index got to the highest point of last 4 months
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email