The Turkish lira rose about 1%, after the United States announced sanctions on Turkey on Monday for its purchase of the Russian S-400 air defense system, and analysts said it was lighter than expected.
The pound recovered from its losses earlier yesterday, and was trading at 7.835 liras against the dollar at 19:05 GMT, up 0.2% over the course of yesterday.
Prior to the US sanctions announcement, the pound was trading at 7.9 per dollar.
On Monday, the United States imposed sanctions on Turkey over its purchase of a Russian air defense system, targeting the largest Turkish defense industries development body, its head, and 3 employees, amid condemnation from Ankara.
Meanwhile, Turkish President Recep Tayyip Erdogan called Monday on his citizens to convert their foreign currency savings into the Turkish lira, and to support the economy with investments that contribute to the development of production and employment.
Attracting investors
Erdogan stressed - during a press conference after a government meeting in the capital, Ankara - that his country is at a level that will satisfy all investors thanks to the diversified production and logistical facilities.
He added that Turkey seeks to attract direct international investments to it, in addition to the flow of investment portfolios, and stressed that Turkey has the ability to provide all investors with the necessary support thanks to its strong banking system.
Erdogan stressed that the Turkish economy is ready for all kinds of strict tests and different scenarios, and expressed confidence in reducing the size of inflation to single digits, as his government had previously succeeded in doing.
According to Turkish Statistics Authority data, inflation rose by 2.3% in November, and reached 14.03% year-on-year.