Turkey's economic confidence has dropped to its lowest level in almost a decade, heaping more pressure on the country's trembling currency.
One measure of economic confidence for August hit 83.9, slumping from 92.2 in July. In response to that data, the lira shed value to reach 6.4 versus the U.S. dollar, a level not seen since August 15.
The confidence reading was the lowest recorded since March 2009 and comes amid a worsening rift with the United States. The diplomatic spat has resulted in the U.S. increasing tariffs on steel and aluminium originating from Turkey.
In response Turkey announced increased tariffs on U.S. products, raising duties on American alcohol to 140 percent, autos to 120 percent and tobacco to 60 percent. Tariffs were also doubled on cosmetics, rice and coal.
Turkey's economy was already considered particularly fragile due to its high level of debt that is priced in dollars. The more the lira weakens, the more expensive that debt becomes.