LONDON (Reuters) - Turkey’s sovereign dollar bonds dropped their most in nearly a month on Monday on growing concerns about Ankara’s military operations in northeast Syria and a tweet by U.S. President Donald Trump threatening to obliterate the country’s economy.
The 2038 issue US900123BB58=TE lost 1.3 cents to 102.102 cents in the dollar, its biggest daily fall since Sept. 10, according to Tradeweb data. The 2040 issue US900123BG46=TE lost 1.2 cents to 96.494 cents in the dollar, the data showed.
The White House said on Sunday Ankara will soon move forward with its long-planned military operation to create what it calls a “safe zone” in northern Syria.
Yet later on Monday Trump threatened in a tweet that he would “totally destroy and obliterate” the Turkish economy if Turkey took any action he considered “off-limits” following his decision to withdraw American forces from northeastern Syria.
Turkish assets came under broad selling pressure with the lira TRY= tumbling 1.7% against the dollar, sliding to its lowest level in more than a month and suffering its biggest daily decline since early July.
Reporting by Tom Arnold, editing by Karin Strohecker