Turkish lira weakens after sources say US set to impose sanctions

Ankara (Reuters) – The Turkish lira extended losses against the dollar late on Thursday after sources said the United States was poised to impose sanctions on Turkey over its acquisition of Russian S-400 air defense systems.

The lira weakened as far as 7.9290 against the US currency and stood at 7.9175 at 1822 GMT, 1.25 percent weaker than Wednesday’s close.

The US is poised to impose sanctions on Turkey over its acquisition last year of Russian S-400 air defense systems, four sources including two US officials told Reuters on Thursday, a move likely to worsen already problematic ties between the two NATO allies.

The long-anticipated step, which is likely to infuriate Ankara and severely complicate relations with the incoming administration of President-elect Joe Biden, could be announced any day, sources said.