Turkish court rejects US pastor Brunson's appeal for release

Turkish lira firms before minister's presentation

Stocks, emerging market currencies rise on planned US-China trade talks

"Similarly, there has been no improvement in relations with the USA and additional sanctions may be on the horizon". The crisis has been precipitated by investor alarm about President Tayyip Erdogan's influence over monetary policy.

Economists gave Albayrak's presentation a qualified welcome and the lira initially found some support, helped by Qatar's pledge to invest $15 billion in Turkey.

Brunson's lawyer Ismail Cem Halavurt on Tuesday filed an appeal for the second time to the Second Penal Court in Izmir to lift his client's house arrest and travel ban. In retaliation, a Turkish court refused to release Brunson, and the Turkish government raised its tariffs on imports of American cars, alcohol and tobacco.

USA sanctions and the declining lira created panic in the markets but on the streets, many Turks appeared to support the government's retaliatory measures.

Turkey on Wednesday doubled tariffs on several USA goods, including alcohol and tobacco products and cars, after Trump increased US tariffs on Turkish aluminum and steel imports to 20 percent and 50 percent, respectively.

In fact, Arriaga says all Americans can apply pressure by hitting Turkey where it hurts the most - in the pocketbook by avoiding buying Turkish goods.

Heavy selling in recent weeks has spread to other emerging market currencies and global stocks and deepened concerns about the economy, particularly Turkey's dependence on energy imports and whether foreign-currency debt poses a risk to banks.

And the day earlier, two Greek soldiers held by Turkey since March for illegally crossing the border were also freed.

The leader of Turkey's main opposition party said Erdogan was using the standoff over the evangelical pastor as a "pretext", blaming the United States for economic problems and diverting attention from his own alleged mismanagement.

Brunson's detention since October 2016 on terror-related charges has soured relations between the two North Atlantic Treaty Organisation allies and sent the lira tumbling.

The announcement helped the Turkish national currency lira recover from record lows against the United States dollar. Ankara also wanted Washington to hand over Turkish cleric Fethullah Gulen, who lives in Pennsylvania and who Turkey suspects of plotting the coup against Erdogan.

He said early on Friday that Turkey had "taken advantage of the United States for many years" and that he was "cutting back on Turkey". Trump tweeted on Thursday.

Mr Trump said: "They want to hold our wonderful pastor". It was presented to the judge as the incriminating evidence against him. The U.S. says the pastor is "a victim of unfair and unjust detention."

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