16.12.201912:30:00UTC+00Turkish Lira Declines To Near 2-month Low Against U.S. Dollar

The Turkish Lira depreciated against the U.S. dollar in the European session on Monday, as Turkish President Tayyip Erdogan's warning to close down Incirlik airbase in retaliation to U.S. sanctions escalated tensions between Washington and Turkey.

On Sunday, Erdogan said that he would close Incirlik and Kurecik airbases in Turkey, if Washington implements sanctions on Ankara for buying a Russian missile system.

Erdogan's comments intensified worries over its relationship with the U.S. that had been worsened over the purchase of the Russian S-400 missile defence system earlier this year and its recent military operation in northern Syria.

The Turkish Lira fell to 5.85 against the greenback, its lowest since October 22. If the Lira drops further, 6.5 is likely seen as its next support level.