Turkish Lira Tumbles As Erdogan Re-Escalates US Tensions

In early trading, the Turkish Lira is slumping (having tagged pre-US-Visa highs) as President Tayyip Erdogan showed no retreat from a diplomatic row with the United States, castigating Washington for what he called an "undemocratic" indictment against his security detail.

As Reuters reports, his comments may further dash hopes of a quick resolution to an on-going diplomatic crisis between the NATO allies. Both Ankara and Washington have cut back issuing visas to each other's citizens as ties have worsened.

"They say the United States is the cradle of democracy. This can't be true. This can't be democracy," Erdogan said in a speech in Istanbul.

 

"If arrest warrants are issued against my bodyguards in absentia ... in the United States, where I went upon invitation, excuse me but I will not say this is a civilized country."

And the reaction (in admittedly thin markets) is clear...