Turkey continues to respond if United States imposes more sanctions: minister

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Trump is willing to ramp up sanctions further if Turkish president, Recep Tayyip Erdogan, refuses to release United States pastor, Andrew Brunson.

The two North Atlantic Treaty Organisation allies have traded tit-for-tat sanctions over the pastor's house arrest.

The announcement came after Qatar's emir Sheikh Tamim bin Hamad Al-Thani held lunchtime talks with Turkish President Recep Tayyip Erdogan.

The Qatari money will be channelled into banks and financial markets, a Turkish government source told Reuters.

Qatar said it would provide "a host of economic projects, investments and deposits" worth $15 billion to support Turkey's economy.

The lira lost almost 40 percent against the dollar this year and suffered a staggering collapse on the heels of Trump's announcement of increased tariffs on metals.

Turkey and the United States exchanged new threats of sanctions Friday, keeping alive a diplomatic and financial crisis that is threatening the economic stability of the North Atlantic Treaty Organisation country as a Turkish court rejected the appeal of an American pastor caught in the middle of the row.

USA stocks and emerging market currencies rebounded on Thursday after China said it will hold trade talks with the United States later in August and Turkey's lira continued its recovery.

Washington warned on Thursday that it would impose more sanctions unless pastor Andrew Brunson, described by US President Donald Trump as a "hostage", was released.

In response, Turkey raised tariffs on several US -made goods, including alcohol and tobacco products and vehicles. The decree also doubled tariffs on American cosmetics, rice, and coal, among other imports.

"Pastor Andrew Brunson is an innocent man held in Turkey & justice demands that he be released".

"They have not proven to be a good friend", Trump said of Turkey during the Cabinet meeting.

Washington warned more economic pressures may be in store for Turkey if it refuses to release Brunson, a White House official said on August 15. Gulen has denied the charges, and the USA has rejected every request to force him from his compound in Pennsylvania to stand trial in Turkey. Brunson is accused of backing a 2016 coup attempt against Erdogan, which Brunson denies.

Inflation in the state is at a 14-year high in Turkey, at close to 16%, but the country's central bank - which is under the control of Erdogan - refuses to raise interest rates, a simple mechanism for bringing down rampant inflation. The currency picked up 6 percent and strengthened briefly at just under 6 to the dollar.

There was also optimism about better relations with the European Union after a Turkish court released two Greek soldiers pending trial. Cavusoglu said ties with the bloc, which have been strained in recent years, were on a firmer basis and had started normalising.

In U.S. markets on Thursday, the Dow Jones Industrial Average rose 1.58 percent and the S&P 500 gained 0.79 percent. "If they have the iPhone, there is Samsung elsewhere".

After he finished speaking, the lira was little changed from beforehand, meaning it remained down around 34 per cent against the USA dollar this year.