Mubasher: The Turkish lira (TRY) dropped against the US dollar on Friday, despite the US Federal Reserve’s move to put a brake on interest rate hikes.

The Turkish currency fell as much as 2.1% against the greenback to TRY 5.5814 amid growing signs of a new feud between Ankara and Washington.

Turkish President Recep Tayyip Erdogan pledged to give the green light for the purchase of Russian S-400 missile defence systems, a step which would see US sanctions slapped against Turkey.

President Erdogan lashed out at US President Donald Trump for “legitimising Israel’s occupation of the Golan Heights” in the day earlier.

“In this fragile period, we have to be active on issues that directly concern us,” he said.

Following Erdogan’s remarks, US-denominated dollar bonds in Turkey stumbled “with the 2043 issue tumbling to its lowest since mid-January, according to Tradeweb data,” Thomson Reuters reported.

By 4:25 pm GMT, the USD/TRY pair 4.34% to TRY 5.7028.