USD/TRY skyrockets to record high near 5 on news of US preparing sanctions list

The USD/TRY pair gained more than 700 pips in the last 30 minutes and advanced to a fresh record high at 4.9990 as the lira came under a heavy selling pressure after news outlets reported that the United States was preparing a list of economic sanctions. 

Last week, US President Donald Trump sent a warning message to Turkey via Twitter saying: "The United States will impose large sanctions on Turkey for their longtime detainment of Pastor Andrew Brunson, a great Christian, family man and wonderful human being. He is suffering greatly. This innocent man of faith should be released immediately!" Yesterday, a Turkish court announced that it an appeal by Brunson to be released from house arrest as his trial on terror and espionage charges continues.

Moreover, earlier this week, the TRY weakened against its rivals after the data showed increasing inflationary pressures in the country.