The dispute between Turkey and the USA was sparked by a row over the detention of American pastor Andrew Brunson, who was jailed almost two years ago in the crackdown that followed a failed military coup.
"When the dollar turned in the second quarter we had a really weak EM market", Said Haidar, founder and chief investment officer, at NY hedge fund Haidar Capital Management, said.
Jeffrey Hovenier, the US Charge d'Affaires, spoke to reporters Tuesday after visiting Pastor Andrew Brunson who is being held under house arrest in the Turkish city of Izmir.
"Rates have gone up by 10 percent".
The decree, signed by President Recep Tayyip Erdogan, raised the tariffs on passenger cars to 120 percent, on alcoholic drinks to 140 percent and on leaf tobacco to 60 percent.
Speaking in Washington, White House spokeswoman Sarah Sanders made clear the United States had no plan to remove the steel tariffs if Brunson were released though she said it could remove sanctions imposed on two senior Turkish officials.
Turkey doubled tariffs on some US imports including alcohol, cars and tobacco on Wednesday in retaliation for USA moves, but the lira rallied further after the central bank's liquidity moves had the effect of supporting the currency.
Tariffs have been doubled on goods including cars, tobacco, and alcohol, while coal, rice, and cosmetic products have also been hit by increases.
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Erdogan also said that the country could depend on Venus and Vestel, two of Turkey's domestic smartphone brands.
The lira rebounded some 8 per cent on Tuesday, helped by news of a planned conference call on Thursday in which the finance minister will seek to reassure global investors. "The tariffs from Turkey are certainly regrettable and a step in the wrong direction".
Pekcan said, according to the report, "the United States is an important trading partner, but it is not our only partner".
The two countries have been at loggerheads over diverging interests in Syria, Ankara's ambition to buy Russian defence systems and Andrew Brunson, a pastor on trial in Turkey on terrorism charges.
Turkish President Tayyip Erdogan has said in recent public speeches that Turkey and its economic allies do not need to use the dollar to conduct bilateral trade.
In a tweet on July 26, Trump called Brunson a "great Christian, family man and wonderful human being" and said he "should be released immediately".
He again described the currency crisis as an attack on Turkey and said that a lack of a run on the banks indicated that an alleged conspiracy had been successfully "repelled".
In a joint statement Tuesday, Turkish business groups called on the government to institute tighter monetary policy in order to combat the currency crisis.
Brunson's lawyer Cem Halavurt told AFP that a higher court would also discuss his appeal for Brunson's release.