Turkish lira reaches record low of 5.4 against the dollars after U.S. says reviewing duty-free access

The Turkish lira tumbled to a record low against the dollar on Monday, after the US said it was reviewing Turkey’s duty-free access to the U.S. market, a move that could affect some $1.66 billion of Turkish imports.

The review by the U.S. Trade Representative’s office, announced on Friday, came after Turkey imposed retaliatory tariffs on U.S. goods in response to American tariffs on steel and aluminium.

Relations between the NATO allies have steadily worsened, strained by differences over Syria policy and an escalating row over the trial in Turkey of an American pastor, Andrew Brunson, a friction that has exacerbated the sell-off in the lira.

Pastor Brunson was held in a Turkish prison for 21 months until he was transferred to house arrest.
Brunson, who has lived in Turkey for more than two decades, faces up to 35 years in jail if found guilty of the charges, which he denies.

The currency has lost a quarter of its value this year, battered mainly by concern about President Tayyip Erdogan’s drive for greater control over monetary policy. 

On Monday, it touched a record low of 5.18 against the dollar. By 0941 GMT it was at 5.1750. 

Erdogan said on Saturday the sanctions by Washington against his ministers were disrespectful and that Turkey would retaliate by freezing assets of U.S. interior and justice ministers.