Turkish lira rallies as Ankara increases tariffs on US imports


The lira has continued its recovery against the dollar on Wednesday as Turkey increased tariffs on US goods and introduced measures to restrict bets against the embattled currency. After rising as high as 5.9 to the dollar, the lira was up 3.8% to $6.16 shortly after 1pm on Wednesday. The currency’s climb followed retaliatory tariffs by Ankara against US goods including rice, coal and cars. The tariff increases followed Donald Trump’s decision last week to double US tariffs on Turkish steel and aluminium, deepening Turkey’s economic crisis.

Turkey’s trade minister, Ruhsar Pekcan, said: “The United States is an important trading partner but it is not our only partner. We have other partners and alternative markets.” In an effort to defend the lira, Turkey’s central bank tightened its rules on currency swaps and other foreign exchange transactions, limiting the ability of banks to supply lira to foreign financial companies.(theguardian)…[+]