Turkish lira drops to record low over US sanction threat

The Turkish currency has fallen to an all-time low against the U.S. dollar after President Recep Tayyip Erdogan challenged the United States to slap sanctions over his government’s decision to test its Russian-made air defense system

ANKARA, Turkey -- The Turkish currency slid further Monday to an all-time low against the U.S. dollar after President Recep Tayyip Erdogan challenged the United States to slap sanctions over his government’s decision to test its Russian-made air defense system.

The lira dropped another 1.3% to 8.06 against the dollar, a day after Erdogan dared Washington to impose sanctions after the NATO-member country tested the S-400 air defense system it purchased from Russia.

The purchase has already seen Turkey kicked off the U.S. F-35 stealth fighter program.

NATO has said that the Russian system poses a threat to the military alliance and particularly endangers the technical secrets of the F-35.