Taiwanese firms in Turkey face risk as local currency crashes

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Early on Friday, Trump announced he would double steel and aluminum tariffs against Turkey, causing the lira to lose up to 18 percent, and investors to lose what remaining confidence they had.

Turkey's central bank tightened liquidity Tuesday while local retail accounts sold dollars to take profit from the lira's slide, buoying the currency.

The dispute between the two North Atlantic Treaty Organisation allies - which reached new intensity over the detention of an American pastor in Turkey - has hammered the lira and also raised questions over the future partnership between Washington and Ankara. We can react in two ways: "economically and politically", Erdogan said in Ankara Tuesday. Its drop of as much as 18 percent on Friday hit US and European stocks as investors fretted about banks' exposure to Turkey. Erdogan says his country is under an economic "siege" that has nothing to do with its economic indicators.

Turkish President Recep Tayyip Erdogan threatened Tuesday to boycott US electronic goods in response to what he says is a targeted economic war being waged against Turkey by the United States.

The retreat of the dollar comes one day after the CBRT moved "to support financial stability and sustain the effective functioning of markets", introducing measures on the Turkish lira and the foreign exchange market (FX) liquidity management. Turkey's FX reserves declined at an accelerated rate this year, due in part to the need to pay for imported oil in US Dollars, and are now below the level deemed sufficient by the International Monetary Fund in order to weather a full-blown economic crisis. "What do you want to do?"

Erdogan has also urged Turks to extend their hospitality to tourists, who were bringing dollars into the country at a critical time.

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This is the latest chapter in a growing diplomatic rift between Turkey and the United States.

USA small business optimism index marked its second highest level in the survey's 45-year history at 107.9, rising to within 0.1 point of the July 1983 record high of 108, the National Federation of Independent Business (NFIB) reported on Tuesday. It pared losses after Albayrak's comments and stood at 7.08 at 2040 GMT on Sunday, Reuters said. "I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt".

Following Monday's meeting between Bolton and Turkish ambassador Serdar Kilic, U.S. officials have given no indication that the United States has been prepared to give ground in the standoff between the two countries' leaders.

Brunson's lawyer, Ismail Cem Halavurt, said the court had up to seven days to decide.

As Turkey's currency started dropping, President Donald Trump announced that the US would be doubling its tariffs on imports of Turkish steel and aluminum.

White House economic adviser Kevin Hassett said Treasury Secretary Steve Mnuchin was monitoring the financial situation in Turkey "very closely".

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