2018.08.1508:04:00UTC+00Turkish Lira Climbs To 5-day High Against U.S. Dollar

The Turkish lira rallied against the U.S. dollar in the European session on Wednesday, as Turkey imposed additional tariffs on US imports to retaliate against the U.S. government's "deliberate attacks" on the Turkish economy.

Turkey doubled tariffs on some U.S. imports including cars, alcohol and tobacco and the country's banking regulator halved the limit on lenders' swap transactions to prevent a sell-off in the currency.

Turkish trade minister Ruhsar Pekcan said that the new tariffs are aimed to "protect the rights of Turkish companies" and retaliation against America's tariffs on steel and aluminium.

The Lira advanced to a 5-day high of 5.9114 versus the greenback, up almost 16.5 percent from a record low of 7.0831 touched on Monday. At Tuesday's close, the pair was worth 6.3440. The next upside target for the lira is seen around the 4.5 level.