Turkish Lira Surges As Trump Appears To Back Off "Destroying And Obliterating" Economy

Appearing to back away from his threats to 'obliterate' Turkey's economy, President Trump tweeted on Tuesday that Turkey has been "good to deal with" and that President Recep Tayyip Erdogan will travel to Washington "as my guest" on Nov. 13.

Trump's sudden shift to using more congenial language triggered a rebound in Turkish assets, and the Turkish lira, which climbed to session highs.

Source: Bloomberg

A few minutes later, Trump offered what could be construed as a revision of his "threat" from yesterday. In another series of tweets, Trump said that although we "may be in the process of leaving Syria" we have "in no way Abandoned the Kurds, who are special people and wonderful fighters."

According to Trump, Turkey understands that "any unforced or unnecessary fighting by Turkey will be devastating to their economy and to their very fragile currency." And thus, Erdogan can be trusted not to massacre the Kurds who had been the US's chief allies on the ground.

The return to coarse threats sent the Turkish lira moving lower, erasing some of its recent rally.