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Turkish lira weakens after U.S. Treasury sanctions announcement

A merchant counts Turkish lira banknotes at the Grand Bazaar in Istanbul, Turkey, March 29, 2019. REUTERS/Murad Sezer

ISTANBUL (Reuters) - Turkey’s lira weakened on Friday after U.S. Treasury Secretary Steven Mnuchin said that President Donald Trump had authorized U.S. officials to draft “very significant” new sanctions to target Turkey after it launched an offensive in northern Syria.

Mnuchin added that they were not executing the sanctions at this time.

The lira stood at 5.89 against the dollar at 1819 GMT, almost 1% weaker than Thursday’s close of 5.8370. It briefly weakened to 5.9010 following Mnuchin’s remarks, before recovering some losses.

Reporting by Ali Kucukgocmen