Economics

Turkish Lira Slumps as U.S. Threatens ‘Significant’ Sanctions

U.S. says it will impose sanctions if pastor not freed
Lira leads losses among world’s major currencies; stocks drop

Trump said he will impose “large sanctions” on Turkey over the detention of an American pastor. Joe Sobczyk reports.(Source: Bloomberg)

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By Aline Oyamada and Selcuk Gokoluk

July 26, 2018 at 3:07 PM UTC

Updated on

July 26, 2018 at 9:09 PM UTC

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The Turkish lira led global currency losses and stocks slumped after the U.S. threatened to impose “large sanctions” if the nation doesn’t release American pastor Andrew Brunson.

The currency fell as much as 2.3 percent and the largest exchange-traded fund tracking Turkish equities sank after President Donald Trump tweeted that Turkey should free the “innocent man” immediately. The lira had gotten some relief yesterday when Turkey -- a NATO ally of the U.S. -- decided to place Brunson under house arrest after almost two years in jail.