In a Wednesday phone conversation with Erdogan, the German chancellor expressed her country's commitment to strengthening its cooperation with Turkey through reciprocal visits at the highest levels, Turkey's Anadolu Agency quoted presidential sources as saying. The currency's climb followed retaliatory tariffs by Ankara against United States goods including rice, coal and cars.
Apple has 22 percent of the smartphone market in Turkey, where 11.4 million units were sold past year, according to Ramazan Yavuz, research manager at IDC consultancy company. Its drop of as much as 18% on Friday hit European and USA stocks as investors fretted about banks' exposure to Turkey. The U.S. was the top destination for Turkish steel exports in 2017, which were worth $1.1 billion.
Details about the U.S-Turkey crisis have been unfolding over the past few days: a pastor as stage hostage, frozen assets for ministers on both sides, tariffs on Turkish exports of aluminum and steel to the USA, a Trump tweet here, a fiery Erdogan speech there. He suggested Turks would buy local or Korean phones instead of US-made iPhones, though it was unclear how he meant to enforce the boycott. The Turkish currency has lost about 40 percent of its value this year against the USA dollar.
On Tuesday, the lira recovered some ground, trading at 6.3300 to the dollar at 1947 GMT, up some 9% from the previous day's close and having earlier touched 6.2995.
Tisdall thinks Erdogan's arrogant style and dictatorial ambitions have backed him into a corner because he can not blame anyone else for Turkey's sputtering economy and souring worldwide relations.
Kalin said Erdogan would hold telephone conversations with German Chancellor Angela Merkel later Wednesday and with Emmanuel Macron of France on Thursday.
But fundamental concerns about the economy persist, experts say.
In an effort to defend the lira, Turkey's central bank tightened its rules on currency swaps and other foreign exchange transactions, limiting banks' ability to supply lira to foreign financial companies.
Turkish media reports say a Turkish court has rejected an appeal for the release of an American pastor from detention.
The chargé d'affaires at the USA embassy in Turkey, Jeffrey Hovenier, visited Brunson on Tuesday and called for his case - and those of others detained in Turkey - to be resolved "without delay" and in a "fair and transparent manner".
Turkey has accused the United States of waging an "economic war" as part of a plot to harm the country.
Turkey has increased trade tariffs on USA imports including tobacco, vehicles and beauty products in a row over an imprisoned preacher that has poisoned relations between the North Atlantic Treaty Organisation allies.
A higher court was however, was scheduled to review the appeal, the agency said.
The government announced the tariffs "under the principle of reciprocity", following sanctions imposed by Washington over the detention of an American pastor, which has sent the lira tumbling to record lows against the dollar.
It was unclear how the Turkish leader planned to implement the boycott.
This week, as economic-contagion fears built, Mr Erdogan's government took a page out of the Trump playbook by blaming "fake news" for the fall of the lira.
Why is Erdogan mad at the United States?The country is, as ever, awkwardly positioned between two ostensibly friendly but imperious powers: the U.S. and Russian Federation. On Tuesday, one dollar was worth 7.2 lira. Turkey regards the Kurdish fighters as terrorists.
Also on the military front, Turkey's purchase of Russia's S-400 missile defence system has irked the USA and other alliance members in North Atlantic Treaty Organisation.