How Trump has again crashed currency with a tweet

The Tukish lira has traded 15% lower against the US dollar at 6.44 after Trump made a Twitter statement. The currency previously traded with a 24% drop in the price to 6.87, reaching a record low.

"I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%", said Trump in Twitter.

The White House later said in a statement: "The President has authorized the production of tariffs for tariffs on imports of steel and aluminum from Turkey." The tariffs in Section 232 are imposed on imports from certain countries whose export threatens national security as described in Section 232, irrespective of trade negotiations or other issues. "

Trump's Tweet and the White House comment came after the Turkish president asked citizens to exchange dollars and other foreign currencies as well as gold in the local lira.

"Exchange the euro, the dollar, and the gold you have in our Turkish lira, this is an internal and a national struggle," Erdogan said.

Erdogan said Turkey faced "economic war" and noted that Turkey would respond to those countries that had begun it.

"Today we are facing economic attacks and we have to protect our country," Erdogan said.

Turkish stocks also dropped today, with iShares MSCI Turkey ETF down 14.9%. The ETF has already dropped 42.3% this year before losses from today.

Source: CNBC

Graphic: Used with permission of Bloomberg Finance L.P.

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