(Reuters) The lira weakened against the dollar on Tuesday after U.S. President Donald Trump said he would give Turkey no concessions in return for the release of a detained American pastor, the latest salvo in a worsening rift between the NATO allies.
In an interview with Reuters on Monday, Trump criticized Ankara over the detention of the evangelical Christian pastor, Andrew Brunson, and said he was not concerned that his tough stance against Turkey could end up hurting European and emerging market economies.
Brunson, who is originally from North Carolina and has lived in Turkey for two decades, has been detained for 21 months on terrorism charges, which he denies. The pastor has become an unwitting flashpoint for the diplomatic tension, which has accelerated the crisis in the lira.
Trump said that, after he helped persuade Israel to free a detained Turkish citizen, he thought Turkish President Tayyip Erdogan would then release Brunson.
“I think they’re making a terrible mistake. There will be no concessions,” Trump told Reuters.
The lira weakened to 6.0925 against the U.S. currency by 1111 GMT, from a close of 6.0865 on Monday, when Turkish markets began a holiday to mark the Muslim Eid al-Adha festival that continues for the rest of this week.
Trade was thinner than usual and probably mainly offshore, with local markets closed for the holiday. The currency has lost 40 percent of its value against the dollar this year. However, selling on Tuesday was limited due to a broadly weaker dollar.
Turkish government officials did not comment on Trump’s remarks when they spoke after prayers to mark the start of the festival.
Devlet Bahceli, leader of a nationalist party allied with Erdogan’s AK Party, told reporters: “We have no business with those who love Brunson more than us”.