Stocks close lower amid Turkish currency crisis

Turkish President Tayyip Erdogan makes a speech in Ankara Turkey

But while the crisis has many geopolitical facets, and involves tit-for-tat sanctions by two North Atlantic Treaty Organisation allies, ordinary Turks are the ones likely to bear the brunt for the frayed tempers of their leaders.

Turkish President Recep Tayyip Erdogan gas called for a boycott of iPhones other United States electronic goods in a fiery speech.

Showing no signs of backing down in a standoff with the U.S., Erdogan suggested that Turkey would stop procuring U.S. -made iPhones and buy Korean Samsung or Turkish-made Vestel instead.

"We (also) have our Venus and Vestel", he said about homegrown Turkish electronics brands.

Stocks were on a five-week winning streak before last week.

He said Russian President Vladimir Putin and Erdogan had also discussed using national currencies in trade.

Erdogan has called this fight an "economic war" and has urged citizens to dig out their dollars, euros and gold to cash them in for Turkish lira.

A boycott would serve as retaliation against the USA sanctions on two Turkish ministers over the detention of American pastor Andrew Brunson, as well as President Donald Trump's doubling of tariffs on Turkish steel and aluminum imports last week, which resulted in a massive drop in the lira's value, according to Reuters.

Erdoğan has accused the U.S. of stabbing Turkey in the back, the government has announced a crackdown on those on social media spreading fake news about the crisis and the central bank has eased financing requirements for Turkish banks.

The ruckus between Turkey and the United States has impacted on other countries' currencies, including the Indian rupee, as investors fear the lira's wobbles could spread to developing nations.

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Erdogan said Turkey is facing an "economic siege", calling the decline of the lira an "attack against our country". "That doesn't mean you like it or want it".

White House press secretary Sarah Sanders said the U.S. had seen "no evidence that Pastor Brunson has done anything wrong".

The Turkish lira has lost more than 40 percent of its value. "We go through the list of options they have to stop this: it involves rate hikes, getting the International Monetary Fund involved and restoring market confidence in the lira".

The lira recovered to 6.61 following the Central Bank's announcement.

Turkey will take "a step-by-step look" at its regulations to reduce the foreign exchange risk to companies, Minister of Treasury and Finance Berat Albayrak said Tuesday.

In a joint statement issued on Tuesday, the industrialists' group TUSIAD and the Union of Chambers and Commodity Exchanges called on the government to allow the central bank to raise interest rates to help overcome the currency crisis.

But Fiona Cinoctta, senior market analyst at City Index, said the Turkish government only has a few days to stem the crisis before it started spilling out into other markets.

Mr Brunson's lawyer Ismail Cem Halavurt on Tuesday appealed again to a Turkish court to release him and lift his travel ban. Andrew Brunson is being held on terrorism charges which he denies.

"Erdoğan himself is proving that he's hostile to America, he's hostile to the West, he's hostile to our values", Hull said. United States officials say National Security adviser John Bolton had met with the Turkish ambassador to Washington on Monday.

The Turkish envoy conveyed the message the pressure and threats would only lead to a "chaos" in relations which could only improve after Washington abandons the language of "threats", Cavusoglu said.

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