Turkey country-specific exchange traded fund surged Monday on hopes that an American pastor facing terrorism charges could be released, raising hopes that the row between Ankara and Washington could be resolved.
The iShares MSCI Turkey ETF (NasdaqGM: TUR) advanced 4.4% Monday and was testing its short-term resistance at at the 50-day simple moving average.
Bolstering Turkey’s markets, the Turkish lira currency strengthened 2.5% to TRY6.1412 against the U.S. dollar. The lira has depreciated 38.5% year-to-date.
Turkish officials said that a Turkish judge could release Pastor Andrew Brunson when he appears in court on October 12 if the U.S. stops harassing the country to send the American back, the WSJ reports.
“It’s a possible outcome,” one official said.
U.S. officials said the Trump administration decided to ease off pressure Turkey amid concerns that the emerging market’s economic troubles could spread to other areas of the world.
Lira Was a Victim of Ankara, Washing D.C. Scuffle
The arrest and detention of Pastor Brunson triggered a retaliatory tariffs from Washington D.C. that pressured Turkey’s economy and dragged the lira currency down more than 40% against the U.S. dollar.