Mubasher: Turkish lira (TRY) rallied against the dollar after President Recep Tayyip Erdoğan said that his US counterpart Donald Trump would not impose sanctions against his country over the purchase of Russian missile systems.

The lira climbed against the greenback, with the USD/TRY pair dropping by 2.27% to TRY 5.6619.

Turkey will be receiving the S-400 missiles from Russia within 10 days, President Erdoğan said, dismissing any potential problems.

Erdoğan met Trump on the sidelines of a summit of the world’s top 20 economies in Japan on Saturday for more than half an hour.

Trump said that Turkey has been treated unfairly, the Turkish president alleged.

However, Trump’s alleged remarks contradicted statements from US officials.

It is impossible for Turkey to evade sanction, which includes a ban from the F-35 fighter jet programme, if the S-400 missiles were installed, Senator Lindsey Graham told CBS.

Washington threatened that Ankara would be punished, if it took the delivery of the missiles, which they allege that they are compromising the NATO defences.

This prompted investors to sell their liras after reports that Washington was drawing together economic measures against Turkey, including cutting Turkish defence firms from the US financial system.