>> Turkey's currency plunged to a new low on Friday, in lock step with its worsening relations with the US. While president Tayyip Erdogan was appealing to Turks to exchange gold and dollars to shore up the lira, President Trump was on Twitter announcing more pain in the form of new tariffs.
Slapping a 20% duty on aluminum and 50% one on steel and describing relations as not good at this time. Waves in the crisis continue to spread abroad, with investors globally selling off shares in European banks with large exposure to the Turkish economy. Reuters Bureau Chief Dominic Evans says the markets are waiting a strong action by Turkey's Central Bank.
>> This morning there was almost uncontrolled selling of the lira for about half an hour when it plowed through six lira to the dollar for the very first time. And within minutes was down to six and a half lira to the dollar. Within ten minutes it had lost 10% in value.
It's picked up a little bit. It's paired back those losses since then. But it's already down 5% today, after 5% yesterday. It's heading for one of its heaviest weekly losses in 10 or 20 years.>>
> Erdogan's characteristic defiance in the face of the crisis is further unnerving investors, telling a crowd in northern Turkey this is a national domestic battle.
The lira has lost about a third of its value against the dollar so far this year, and those falls as much as 20% on Friday, are gaining pace. But despite the lira's worst week for more than ten years, you wouldn't guess that here in Turkey the crisis barely making the headlines.
>> That reflects perhaps the fact that a lot of the media is very strongly pro-government, pro-President Erdogan here in Turkey. Erdogan has framed this economic problem as essentially a political issue. A dispute between the United States and Turkey.>> While Turkey and the US disagree on a host of issues, the current fallout is focused around this man, Andrew Brunson, released a few weeks ago on house arrest.
The US pastor is on trial in Turkey for belonging to a terrorist organization, but President Trump has tweeted his innocence and wants him released. Over an hour of talks earlier this week between Turkish officials and their counterparts in Washington ended with no sign of a breakthrough.