Turkish Lira plunges as US threatens sanctions on Russian weapon purchase


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Turkish Lira plunges as US threatens sanctions on Russian weapon purchase

On Tuesday, the 2nd of April, the Turkish Lira had plunged as much as 3 percent, an incident which JPMorgan had forecasted a week earlier amid a tumultuous political outlook. In fact, the Turk currency began to fall, after United States had halted deliveries of equipment linked to a Turk order of F-35 fighter planes.

Apart from that, Trump Administration had also warned Ankara of possible sanctions ahead, as it kept purchasing Russian defense system despite United States’ irksome responses on multiple occasions. On Tuesday’s (April 2nd) market, Turkish Lira had plunged as much as 3.3 percent to 5.6800, after a senior US official had said that the purchase of Russian S-400 missile system could possibly trigger sanctions, as radars of Russian S-400 missile system could track F-35, a widely used fighter jet for Washington and other NATO allies and following Turkish acquisition of the particular missile system, US F-35s would not be able to evade Turk air borders as well.

Although, Turk acting Defense Secretary, Patrick Shanahan had been quoted saying later on Tuesday (April 2nd) that the disputes would likely to be resolved soon, his comments had little impact on Turkish currency. Apart from the weapon issue, Turkish currency had also been on a backfoot since its last year’s saponification of 30 percent against American dollar, a sell-off incident triggered by concerns of independence of the Turkish Central Bank.