Turkey’s lira firmed nearly 1% on Thursday on expectations that ties with Washington will improve after the two presidents discussed Ankara’s purchase of Russian S-400 missile defense systems during a call, ONA reports citing Reuters.
The lira was down as much as 14% this year due in part to growing friction between the NATO allies and the risk that delivery of the Russian-made surface-to-air weapon would trigger U.S. sanctions. Washington says the S-400s would compromise its F-35 fighter jets. During Wednesday’s call, Turkish President Tayyip Erdogan reiterated to U.S. President Donald Trump a proposal to set up a working group to assess the impact of the S-400s. The two also agreed to meet on the sidelines of a G-20 summit in Japan at the end of June.
The lira stood at 5.9650 at 0838 GMT, firming nearly 0.85% from Wednesday’s close of 6.0155. Earlier, it firmed as much as 5.9625, its strongest in more than two weeks.