Turkey's Erdogan vows U.S. boycott, but diplomats resume talks

Wall Street shares set to head north at the open

Wall Street shares set to head north at the open

"A ruling can come tomorrow, or even tonight", he said.

Investors seemed to look through the fiery rhetoric, pushing the lira off record lows on confirmation that Turkish and United States government officials met on Monday.

The BBC Turkey correspondent Mark Lowen said Mr Erdogan's boycott could stoke tensions with the U.S. further - and Turks are waiting nervously for Mr Trump's response. Showing no signs of backing down in the standoff, Erdogan suggested that Turkey would stop procuring US-made iPhones and buy Korean Samsung or Turkish-made Vestel instead.

The United States imposed sanctions on two Turkish government ministers over the trial on terrorism charges of USA evangelical pastor Andrew Brunson in Turkey, and last week Washington raised tariffs on Turkish metal exports.

Behind the scenes, however, diplomatic dialogue appears to have resumed.

The currency, which had been hit by investor concerns over Turkey's financial stability, has hit a series of record lows since August 1, when the US imposed sanctions.

The Turkish lira has dropped to record lows in recent weeks, having fallen some 42 per cent this year.

The administration has also leveled sanctions against two members of Erdogan's Cabinet.

That's because investors have lost confidence in management of the economy under Erdogan, who believes in unorthodox economic policy, demands low interest rates and constantly assails "the interest rate lobby".

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On August 10, Trump approved a doubling of steel and aluminum tariffs on Turkey, saying Washington's ties with Ankara were "not good at this time".

The finance chief, Berat Albayrak is due to address hundreds of foreign investors on Thursday in a teleconference, the state-run Anadolu Agency said.

In a joint statement Tuesday, Turkish business groups called on the government to institute tighter monetary policy in order to combat the currency crisis.

Turkey is retaliating against the U.S. for the sanctions placed against the country for not freeing USA pastor Andrew Brunson who faces terrorism charges and a prison sentence.

Hurriyet newspaper said the court in Izmir rejected the appeal, but that a higher court would review the appeal. The Turkish leader has consolidated power after a failed coup attempt in the winter of 2016, not long before America's presidential election.

In the case of the American pastor, the lawyer representing Andrew Brunson again asked a Turkish court to release him from house arrest.

Will continue talks with United States if it shows constructive stance.

The Turkish envoy conveyed the message the pressure and threats would only lead to a "chaos" in relations which could only improve after Washington abandons the language of "threats", said Turkey's foreign minister Mevlut Cavusoglu.

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