Nation shaken by fi­nan­cial fears, Trump rat­tles it fur­ther

The Register Citizen (Torrington, CT) - - NEWS/FROM THE FRONT PAGE -

A fi­nan­cial shock­wave ripped through Turkey on Friday, when its cur­rency nose­dived on con­cerns about its eco­nomic poli­cies and a dis­pute with the U.S., which Pres­i­dent Don­ald Trump stoked fur­ther with a prom­ise to dou­ble tar­iffs on the NATO ally.

The lira tum­bled 14 per­cent in one day, to 6.51 per dol­lar, a mas­sive move for a cur­rency that will make the Turk­ish poorer and fur­ther erode in­ter­na­tional in­vestors’ con­fi­dence in the coun­try.

The cur­rency’s drop — 41 per­cent so far this year — is a gauge of fear over a coun­try com­ing to terms with years of high debt, in­ter­na­tional con­cern over Pres­i­dent Re­cep Tayyip Er­do­gan’s push to amass power, and a sour­ing in re­la­tions with al­lies like the U.S.

The diplo­matic dis­pute with the U.S. was one of the trig­gers that turned mar­ket jit­ters into a full-blown route this week. Turkey has ar­rested an Amer­i­can pas­tor and put him on trial for es­pi­onage and ter­ror-re­lated charges linked to a failed coup at­tempt in the coun­try two years ago. The U.S. re­sponded by slap­ping sanc­tions on Turkey and threat­en­ing more.

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