Tensions between US, Turkey grow as both capitals suspend visa services to each other's countries

The U.S. said Sunday it was suspending non-immigrant visa services at its diplomatic facilities in Turkey following the arrest of a consulate employee, prompting Turkey to halt visa services in the U.S.

The U.S. Embassy in the capital of Ankara tweeted a statement from the U.S. Mission to Turkey saying that recent events have forced it to "reassess the commitment of the Government of Turkey to the security of U.S. Mission facilities and personnel."

The Turkish Embassy in Washington responded with a similar statement on Twitter late Sunday and said it would "reassess the commitment of the Government of the United States to the security of Turkish mission facilities and personnel." It said the measures would apply to e-Visas, visas issued at borders and visas in passports.

This week, Turkish authorities arrested a U.S. Consulate employee of Turkish nationality for alleged links to the network of U.S.-based cleric Fethullah Gulen, who the Turkish government blames for last summer's failed coup. Gulen denies involvement.

Relations between Turkey and the U.S. have been tense over disagreements on Syrian Kurdish militants, which the U.S. backs in the war against the Islamic State group. Turkey considers them a terror group and an extension of the Kurdistan Workers' Party or PKK, which has waged an insurgency within Turkey's borders for more than 30 years.

USD/TRY opened with a gap up after the news and has rose with more than 1900 pips so far

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

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