Turkish Lira goes past 5 to the dollar after U.S. sanctions

The Turkish Lira on Thursday slid to a record low beyond 5 to the dollar and stocks fell, after the United States imposed sanctions on two of President Tayyip Erdogan’s ministers over the trial of a U.S. pastor accused of backing terrorism.

The lira first touched 5 to the dollar on Wednesday, when the White House announced sanctions against Justice Minister Abdulhamit Gul and Interior Minister Suleyman Soylu over Turkey’s detention of Andrew Brunson.

The United States has blamed both for being involved in Brunson’s arrest and detention. Brunson, an evangelical Christian pastor from North Carolina, has lived in Turkey for more than two decades. He is charged with supporting the group Ankara blames for orchestrating an attempted coup in 2016. He denies the charges, but faces up to 35 years in jail.

The lira hit a record low of 5.0630 to the dollar at 0720 GMT.

The currency has lost a fifth of its value this year, battered by rising inflation and concerns over the central bank’s independence in the face of repeated calls by Erdogan for lower interest rates.