USA says more sanctions await if Turkey does not free pastor

Turkish Finance Minister Berat Albayrak, who is Erdogan's son-in-law, and his Qatari counterpart Ali Sharif Al-Emadi were present at the talks in the capital Ankara.

Turkey has also in recent days shown an interest in repairing ties with Europe after a crisis sparked by Ankara's crackdown on alleged plotters of the 2016 failed coup.

"Turkey is not in favor of an economic war, but we can not remain with no reaction if there is an attack on us", Erdogan spokesman Ibrahim Kalin said.

Investors said Albayrak's conference call would test whether Turkey can persuade markets that its monetary policy is not hostage to political influence.

"We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!" "Given a United States president tends to do badly in his first mid-term election, he might do more on trade issues after the election", he added.

The Turkish Finance Ministry said earlier that both ministers discussed USA sanctions imposed on Turkey, which have worsened a row between the North Atlantic Treaty Organisation allies and sent the lira currency to a record low against the dollar.

The dispute with the United States, focused on a tit-for-tat tariff row and Turkey's detention of Brunson, helped turn the currency's steady decline into meltdown.

A Trump administration official said on Thursday evening that the White House has told Turkey to free the pastor if it wants to cool off diplomatic and economic tensions between the two nations.

The dollar this week rose to a 13-month high against a basket of currencies, getting an extra boost as emerging markets have sold off on concern about contagion from Turkey and investors sought a safehaven in the USA currency.

The lira plunged as much as 18% at one point on Friday - the biggest one-day drop since Turkey's 2001 financial crisis - as US President Donald Trump announced he had doubled steel and aluminium tariffs.

In the statements made by the Amir in his official Twitter account in Arabic and Turkish, he stressed that Qatar supports and stands by the brotherly Turkish people who have stood by it, noting the depth and strength of the relationship between Qatar and Turkey which is worthy of emulation by other countries.

"If [the United States] have the iPhone, there's Samsung on the other side", he said, referring to USA giant Apple's iconic phone and the top South Korean brand.

Investors are anxious that about Mr Erdogan's control over the central bank and his pressure to keep it from raising interest rates. And while many global economists peg the currency's troubles to a combination of debt, inflation and Erdogan's vow to reject raising interest rates - a typical solution to these problems - Erdogan himself has found a ready villain: the U.S.

Turkey also maintains a small military base in Qatar.

MSCI's emerging market currency index.MIEM00000CUS hit its lowest level since May 2017 on Wednesday as many major emerging currencies extended their selloff in the wake of Turkey's currency crisis.

There was also optimism about better relations with the European Union after a Turkish court released two Greek soldiers pending trial.

His telephone call with Macron comes a day after he spoke on the phone with German Chancellor Angela Merkel.

The Turkish currency began to recover after authorities this week took steps to help bank liquidity.

  • Zachary Reyes