Mubasher: Turkish lira (TRY) fell by around 1.5% on Thursday after Ankara asserted its willingness to carry ahead with its purchase of Russian missile defence systems, Reuters said.

By 3:45 pm GMT, the lira traded 1.11% lower against the US dollar at TRY 5.8731.

This came despite pressure from the US, including a letter in which Washington warned that Turkey would be excluded from the F-35 fighter jet programme, if Ankara accepted the delivery of the S-400 missile systems from Russia.

The Turkish currency extended further its drop on Thursday after Foreign Minister Mevlut Cavusoglu reiterated that Washington’s letter will not back down from its decision.

Cavusoglu’s remarks came one day after President Recep Tayyip Erdogan said that the S-400 deal was definitely completed, vowing that Turkey’s removal from the F-35 programme will be challenged on “every platform.”

The dispute between the NATO allies have sent a shudder of fear among investors, leading the lira to drop by around 10% so far this year, as the transaction with Russia would bring about US sanctions against Turkey.

In recent weeks, the embattled currency pared some losses, over hopes that the US and Turkey would reach a common ground regarding a deal.

On a side note, Turkish holdings of forex deposits and funds, including precious metals, hit a record peak of $185.81 billion in the week to 7 June.

The bank’s overall forex reserves stood at $74.9 billion, while its net international reserves were $28.48 billion in the same week.