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Asia share markets slipped and the euro hit one-year lows on Monday as a fresh fall in the Turkish lira fuelled demand for safe havens, including the USA dollar, Swiss franc and yen.

The Turkish central bank has pledged to take "all necessary measures" to stabilize the country's economy to make sure the banks have all the money they need.

Angered by the continued detention of an American pastor, the US has imposed new sanctions on Turkey which Foreign Minister Heiko Maas told reporters Monday has increased political tensions. The Capital Markets Board of Turkey issued a similar warning to those who spread "lies, false or misleading information, news or analysis".

The lira has now dropped some 45 percent this year.

He says it would "facilitate solving the economic problems" so "at the end of the day it's also in the interests of Turkey".

Turkish President Recep Tayyip Erdogan said today that the collapse in the value of the Turkish lira was a political plot against the country. It was up 5 percent on Tuesday, at 6.55 per dollar, having fallen 42 percent so far this year, with most of those losses coming in recent weeks.

"We, as the Turkish Airlines, stand by our state and our people".

"If we postpone our investments, if we convert our currency to foreign exchange because there's danger, then we will have given into the enemy", he said.

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Official US fuel storage data is due to be released later on Wednesday by the Energy Information Administration (EIA). For the past week, crude imports averaged 7.9 million barrels a day, up by 182,000 compared with the previous week.

"What you want to see is tight monetary policy, a tight fiscal policy and a recognition that there might be some short-term economic pain - but without it there's just no credibility of promises to restabilize things", said Craig Botham, Emerging Markets Economist at Schroders.

While even a widespread Turkish boycott would do little to dent United States economic interests, it shows Erdogan refusing to give in to market turmoil that's pushed borrowing costs to record highs and threatens to descend the nation into a financial crisis.

Erdogan has also urged Turks to extend their hospitality to tourists, who were bringing dollars into the country at a critical time.

The business groups also urged diplomatic efforts with the United States and an improvement in relations with the European Union, which is Turkey's major trading partner. The pastor's Turkish lawyer launched a fresh appeal on Tuesday for his release.

"This is the sign of a clear attack, a challenge", Albayrak said.

"In the absence of bad news, markets will move higher", said Steve Chiavarone, vice president and portfolio manager at Federated Investors in NY. "I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt". The White House said the newly imposed sanctions would take effect from Aug 13.

Why is Erdogan mad at the United States?

At the weekend Trump said he had authorised the doubling of tariffs on Turkish steel and aluminium to 50 per cent and 20 per cent respectively.


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