Turkey hikes tariffs on US

In an effort to defend the lira, Turkey's central bank tightened its rules on currency swaps and other foreign exchange transactions, limiting banks' ability to supply lira to foreign financial companies.

The evangelical pastor is accused of terrorism charges and aiding the network of a USA -based Islamic preacher blamed by Ankara for masterminding a coup attempt in July 2016 against Turkish President Tayyip Erdogan.

The lira continued its recovery against the dollar on Wednesday as Turkey increased tariffs on United States goods and introduced measures to restrict bets against the embattled currency.

Sheikh Tamim is the first foreign head of state to visit Turkey since the stand-off between Ankara and Washington started last week. "It was important for me to go over there, face-to-face visit him in prison and tell him that that's not going to happen".

Salim bin Mubarak Al Shafi, Qatar's ambassador to Turkey, said his country would continue to support Turkey, adding that the emir's visit demonstrated the "depth" of the two countries' relations.

On Monday Erdogan, angered by what he sees as Washington's attempts to unilaterally impose its rules on global finance, said Turkey had "made advancements in our ties with Russian Federation in accordance to our benefits and interests".

Turkish Finance Minister Berat Albayrak and his Qatari counterpart Ali Sharif al Emadi were also present at the talks in the capital Ankara.

His government is grappling with a currency crisis and a damaging dispute with the United States that late on Wednesday appeared further than ever from being resolved.

The lira remains more than 14% from this time last week.

Relations between Washington and Ankara have rapidly soured in recent weeks over Turkey's detention of an American pastor.

The duties were raised in response to the USA administration's "deliberate attacks on our economy", Vice-President Fuat Oktay wrote on Twitter.

"Trade wars help no one, but Turkey will do what is necessary to protect our industries and economy from assault", Pekcan said.

Turkish officials have also emphasised that Ankara wants to retain strong ties with Europe, which has also expressed deep unease with Trump's trade policies. "We have Vestel", AP quoted him as saying.

Her remarks come as US President Donald Trump's punitive measures against Turkey have pushed its lira into freefall and sent shudders through its financial markets.

Turkey sought to face down the United States and currency traders as its president, Recep Tayyip Erdoğan, reportedly received support from the German chancellor, Angela Merkel. He is due to speak with French President Emmanuel Macron on Thursday.

Turkey's national currency, the lira, has tumbled by almost 40% against the USA dollar so far this year.

With the dispute between the US and Turkey seeming to escalate by the day, the value of Turkey's lira currency against the dollar has plummeted, but Sanders rejected any blame on the U.S.'s part.

Dimitris Tsarouhas, an assistant professor in the department of worldwide relations at Bilkent University in Ankara, said: "Turkey remains a North Atlantic Treaty Organisation country and, from a military perspective, this limits its ability to manoeuvre in search of new alliances".

"Remarkable turnaround", Tim Ash, Bluebay Asset Management senior emerging markets analyst wrote in a client note.