Turkish Lira banknotes. File photo/ Reuters
ISTANBUL: The Turkish lira weakened more than 1 per cent against the dollar early on Tuesday after the United States halted delivery of equipment related to the F-35 fighter aircraft to Turkey.
At 0519 GMT, the lira stood at 5.5550 against the US currency, compared with a close on Monday of 5.4913.
The lira has been volatile in the uncertain aftermath of local government elections, weakening 2.5 per cent on Monday to 5.7 per dollar before recovering ground.
In Istanbul, both the main opposition Repulican People’s Party (CHP) and President Tayyip Erdogan’s AK Party claimed victory in the mayoral elections. Later, both candidates said CHP’s Ekrem Imamoglu was around 25,000 votes ahead.
The disagreement over the F-35 is the latest of a series of diplomatic disputes between the United States and Turkey, foremost among which are Turkish demands that the United States extradite cleric Fethullah Gulen, differences over Middle East policy and the war in Syria, and sanctions on Iran.
US officials have told their Turkish counterparts they will not receive further shipments of F-35 related equipment needed to prepare for the arrival of the stealthy fighter aircraft, sources told Reuters on Monday.
Washington’s step to block the delivery of the jet comes amid fears, harbored by the United States and other NATO allies, that radar on the Russian S-400 missile system will learn how to spot and track the F-35, making it less able to evade Russian weapons.
China’s economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed, as sluggish demand at home and abroad weigh on activity despite a flurry of policy support measures. The median forecast was slightly lower than the 6.3 per cent economists had predicted in the last poll in January.
Japan will forge ahead with a planned sales tax hike to 10 per cent in October, likely knocking the economy into contraction in the fourth quarter, a Reuters poll showed. Tokyo has twice postponed raising the sales tax from 8 per cent but Prime Minister Shinzo Abe has repeatedly said the hike would be proceeded this time. To blunt its economic impact, the government has earmarked about 2 trillion yen ($18 billion) in spending.
German investor morale improved for the sixth month in a row due to a resilient global economy and a delay to Britain’s departure from the EU, a survey showed on Tuesday, but the growth outlook for Europe’s largest economy remains clouded by external risks.
The Sharjah Research, Technology and Innovation Park (SRTI Park) participated in the Annual Investment Forum (AIM) 2019 to discuss the park’s rapid growth towards creating an innovation-based economy by supporting applied scientific and technological research to carry out investment activities.
Construction delays and cost blowouts could hit the next wave of liquefied natural gas (LNG) projects as there are a limited number of contractors able to handle the huge projects, three developers said.
Nissan Motor on Tuesday threw cold water on hopes for a quick fix to strained relations with France’s Renault, saying inequality between the partners could unravel their two-decade-old automaking alliance.
French business consultancy firm Capgemini agreed to buy engineering and digital services company Altran for 3.6 billion euros ($4.10 billion) to tap into the fast-growing engineering outsourcing services market.