Investing.com – The lira and Turkish assets tumbled Friday after U.S. Treasury Secretary Mnuchin said U.S. President Donald Trump had authorized the Treasury Department to draw “very significant” new sanctions on Turkey
The order comes as Trump expressed concern about the ongoing military offence carried out by Turkey, Mnuchin said. He added, however, that the administration is not ready to execute the sanctions at this time.
Turkey has come under widespread criticism after it launched an offensive in northeast Syria.
USD/TRY rose more than 1% following the announcement. The iShares MSCI Turkey ETF (NASDAQ:TUR) fell 0.6%.