Nation shaken by financial fears, Trump rattles it further
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.