The Turkey country-specific exchange traded fund was among the worst performers Monday, with Turkey’s lira currency touching new record lows, as a diplomatic row between Turkey and U.S. added to the volatility.

The iShares MSCI Turkey ETF (NasdaqGM: TUR) declined 6.5% Monday. Further weighing on the Turkish markets, the U.S. Dollar strengthened 3.9% against the Turkish lira to ₺5.2801.

Turkey’s lira hit a record low and bonds plunged on heightened concerns over a diplomatic scuffle between the U.S., Bloomberg reports.

The U.S. placed sanctions on two senior government ministers over Turkey’s detainment of an American pastor over espionage and terrorism charges.

President Recep Tayyip Erdogan said Saturday that Turkey will respond in kind to U.S. sanctions over the detained American pastor.

As the currency depreciated, Turkish policymakers changed reserve rules to bolster the banks’ foreign-exchange liquidity, which many analysts argue is insufficient to support the decline in the lira.

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