President Trump has made it clear that he is not resting on Pastor Andrew's case, and the USA will not cave to Turkey and their outlandish demands.
The US president is taking issue with the continued detention in Turkey of American pastor Andrew Brunson, who faces 35 years in prison on espionage and terror-related charges.
Turkey is calling for the U.S.to extradite a Pennsylvania-based Muslim cleric accused engineering a 2016 coup attempt.
Turkish President Recep Tayyip Erdogan has accused the U.S. of trying to "bring Turkey to its knees".
Global stocks also suffered this week as the sell-off spilled into developed markets, adding to the angst over U.S. It also rejected an appeal for his travel ban to be lifted, Anadolu reported.
Whatever action the United States does take, economists said it looked likely to cause more pain for Turkish assets in the immediate future.
Last week, Trump announced on Twitter that he had green-lit a doubling of steel and aluminum tariffs on Turkey, and warned that USA relations with Turkey "are not good at this time!" Tit-for-tat tariffs by the United States and China on another $16 billion of each other's goods are due to kick in next week, and President Donald Trump has threatened to go after even more Chinese imports in the future.
The latest United States announcement came after Turkish Finance Minister Berat Albayrak tried to soothe the markets during an unprecedented conference call with hundreds of foreign investors, insisting Turkey would emerge "stronger" from the currency crisis and would not need an International Monetary Fund bailout. Turkey, for its part, denounced the "economic war" and said it would find "new friends and allies".
Standard & Poor's is scheduled to release a review of Turkey's sovereign credit rating after market close on Friday. Moody's stripped Turkey of its investment-grade rating in 2016 and Friday's move lowered it one rung further.
Doubts about Turkey's future intensified as relations with the United States, a longtime North Atlantic Treaty Organisation ally, soured. "Given a USA president tends to do badly in his first mid-term election, he might do more on trade issues after the election", he added. "Would the amount of Turkey's debts decrease?"
Turkish officials have retaliated by raising tariffs on US goods.
The lira has staged a small recovery but that is threatened by a fresh tweet from US President Donald Trump. They came out. They want to hold our wonderful pastor.
A Chinese delegation led by Vice Minister of Commerce Wang Shouwen will meet USA representatives, China's Ministry of Commerce said on Thursday.
The Canadian dollar CAD= strengthened against its USA counterpart after data showing a surge in domestic inflation triggered increased bets on another Bank of Canada interest rate hike as soon as September.
Turkey has sought to persuade the United States to spare Turkey's state-owned Halkbank from a threatened fine for allegedly helping Iran evade U.S. sanctions.