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Turkey’s currency strengthens despite Mike Pence warning

6:46 pm, 16th August 2018

Mr Pence tweeted: “Pastor Andrew Brunson is an innocent man held in Turkey & justice demands that he be released.

“Turkey would do well not to test @POTUS Trump’s resolve to see Americans who are wrongfully imprisoned in foreign lands returned home to the United States.”

:: Turkey to boycott US electronics – including iPhone

The two NATO allies have exchanged tit-for-tat sanctions over the pastor’s house arrest.

Turkey’s currency, which had been under pressure as inflation soars, plunged more than 20% last week after Mr Trump imposed sanctions on Turkey’s steel and aluminium exports.

However, the Turkish lira has staged a recovery as Turkey hit back with its own tariffs and made it more difficult for investors to short the currency.

It also won support from Qatar, which plans to invest $15bn in Turkey.

There were fears Ankara may need to turn to the International Monetary Fund as the currency crisis escalated.

The lira, which has fallen almost 40% against the dollar this year, rose 4.5% to 5.7TL on Thursday afternoon.

:: FTSE 100 sinks 1.5% amid concerns over Turkey currency crisis

Finance minister Berat Albayrak told more than 3,000 international investors and economists on a video conference that Turkey would emerge stronger from the crisis.

Mr Albayrak, President Recep Tayyip Erdogan’s son-in-law, said the country’s banks were healthy and strong and the nation would not be turning to the IMF.