Turkey’s lira firms after US says talks expected on U.S. pastor

Turkey’s lira firmed more than three percent on Monday after U.S. Secretary of State Mike Pompeo said he expected discussions with Turkish officials this week over the fate of a U.S. pastor whose detention has strained relations.

The lira has tumbled 40 percent against the dollar this year, hit by concerns about President Tayyip Erdogan’s influence on monetary policy and the diplomatic row with Washington.

U.S. President Donald Trump has slapped tariffs on Turkey over its trial of Andrew Brunson, an evangelical Christian pastor from North Carolina, who has lived in Turkey for more than two decades. He is facing terrorism charges, which he denies.

Pompeo told reporters in New York he expected talks with Turkish officials to take place this week to discuss Brunson’s fate. Erdogan is visiting the United States this week for a United Nations meeting.

Yes he could be released this month. He should have been released last month. And he should be released today in fact. We have talked to the Turks. They know the expectations, Pompeo told reporters in New York.

Pastor Brunson and the other U.S. persons that are being held by Turkey all need to be released by Turkey and that needs to be done immediately, he added.

The lira firmed as far as 6.0575 against the dollar as of 1607 GMT, compared with Friday’s close of 6.2900. It later weakened to 6.15 to the dollar at 1831 GMT.

Speaking to reporters in New York, Turkish presidential spokesman Ibrahim Kalin said the decision on Brunson would be made by the judiciary and urged everyone to respect the court’s ruling.

Obviously we want to have good relations with every country, including the United States, but we have to resolve the issues between the two countries through diplomacy, Kalin said.

It’s not just about Pastor Brunson, but a number of other issues, including the American support for the YPG in Syria, which is a concern for our national security.

Turkey considers the YPG militia a terrorist organisation linked to Kurdish militants on its soil.