Turkish Lira Bloodbath Continues As Erdogan Threatens Retaliation

Thursday, August 2, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.comThu, 08/02/2018

It would appear that Turkish President Erdogan is not a fan of Kenny Rogers as he watches his nation’s currency collapse into worthlessness, he refuses to “fold ’em”, instead doubling down on retaliatory threats against the Trump administration.

The U.S. “move will likely only incense Erdogan and a commensurate response is already promised,” Timothy Ash, a strategist at BlueBay Asset Management in London, said in emailed comments.

Turkey remains particularly exposed to shifts in investor sentiment, given its large external financing needs, and the reaction is clear – another 5 handle collapse in the Lira to a new record low…

As The Telegraph reports, the Turkish foreign ministry warned that Washington’s sanctions move “will greatly damage constructive efforts” to solve outstanding issues and told Washington it would retaliate.

“Without delay, there will be a response to this aggressive attitude that will not serve any purpose,” it said.

Foreign Minister Mevlut Cavusoglu, who is set to meet US Secretary of State Mike Pompeo in the next few days, also warned that the move “will not go without response”.

“The market lurches from one negative event to another,” said Nigel Rendell, a senior analyst at Medley Global Advisors in London. “The net result being the erosion of foreign appetite for Turkish assets and an ever weaker lira.”

The Rest…HERE

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