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U.S. pastor Andrew Craig Brunson is escorted by Turkish police officers to his house in Izmir on July 25, 2018. A Turkish court on Aug. 17, 2018, rejected an appeal for his release on charges of links to groups opposed to the government. (Photo: AFP/Getty Images)

Only hours after a Turkish court rejected an appeal on Friday for the release of a U.S. pastor from house arrest, President Donald Trump said Ankara had acted "very, very badly" in the case and the United States was "not going to take it sitting down."

Turkey has been holding pastor Andrew Brunson for two years on charges that he is linked to the Fethullah Gülen Movement, which Turkey says was responsible for a failed coup attempt in 2016.

The 50-year-old pastor and the U.S. government vehemently deny those charges.

"They made up this phony charge that he is a spy, and he is not a spy," Trump told reporters.

A higher court in Izmir upheld a lower-court decision that rejected the lifting of Brunson's house arrest, according to the state-run Anadolu agency and the newspaper HaberTurk. It also rejected an appeal for his travel ban to be lifted, Anadolu reported.

Turkey has taken advantage of the United States for many years. They are now holding our wonderful Christian Pastor, who I must now ask to represent our Country as a great patriot hostage. We will pay nothing for the release of an innocent man, but we are cutting back on Turkey! — Donald J. Trump (@realDonaldTrump) August 16, 2018

"They should have given him back a long time ago," the president said. "And Turkey has in my opinion acted very very badly. We haven't seen the last of that. We are not going to stake it sitting down. They can't take our people."

Even before Friday's court decision, Trump — who calls Brunson "our wonderful Christian pastor" — had warned of new economic sanctions if the protestant clergyman is not freed

"We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!!" he said in a tweet Friday.

The U.S. recently slapped financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey over the pastor's continued detention, causing economic upheaval in Turkey.

In retaliation, Turkey on Wednesday imposed tariffs on certain U.S. goods.

The Turkish lira fell 5 percent Friday after the Turkish court released its decision.

Brunson, who attended Wheaton College, has lived in Turkey for more than two decades as pastor of a small local church. Vice President Mike Pence has been especially outspoken on the Brunson case, particularly before Christian audiences.

On Tuesday, Pence tweeted that Brunson is innocent and "justice demands that he be released." He said Turkey would "do well not to test @POTUS Trump's resolve" over the issue.

Turkish President Recep Tayyip Erdogan has bristled at such U.S. pressure.

“I call out to those in the United States. It is a shame,” Erdogan said in a speech on Saturday. “You are trading a strategic NATO ally for a priest.”

Brunson was indicted on charges of “acting in a parallel and coordinated fashion” with Turkey’s two chief enemies: the Kurdistan Workers’ Party, or PKK, and a network run by Gülen.

U.S. authorities have rebuffed efforts by Turkey for the extradition of Gülen, who lives in Pennsylvania.

Erdogan, hinting at a trade for Brunson, said in a speech last year that if the U.S. turned over Gülen to the Turkish authorities "we will do what we can in the judiciary to give you this one."

Read or Share this story: https://usat.ly/2MsuB9T</s>The Latest: Turkey court rejects release of US pastor

ANKARA, Turkey (AP) — The Latest on Turkey's currency crisis and diplomatic dispute with the United States (all times local):

Turkey's state-run news agency says a higher Turkish court has also rejected an appeal for the release from detention of an American pastor who is at the center of a Turkish-U.S. spat.

Anadolu Agency said a high court in Izmir upheld a lower court's decision earlier this week to keep pastor Andrew Brunson under house arrest. It also rejected an appeal for his travel ban to be lifted, Anadolu reported.

Brunson's continued detention has aggravated a feud between the NATO allies and has helped trigger a Turkish currency crisis.

U.S. President Donald Trump's administration on Thursday signaled new sanctions against Turkey over Brunson's detention and Turkey said it would reciprocate.

Turkey's currency remains steady against the dollar despite an apparent threat of possible new sanctions by U.S. President Donald Trump.

The Turkish lira stood at 5.80 per dollar on Friday, up about 0.4 percent against the dollar.

The currency has recovered from record lows earlier this week. Investors, already worried about Turkey's economy, were irked by a diplomatic and trade dispute with the United States over the continued detention of an American pastor Andrew Brunson on espionage and terror-related charges.

In a tweet on Thursday, Trump urged Brunson to serve as a "great patriot hostage" while he is jailed and criticized Turkey for "holding our wonderful Christian Pastor."

Trump added: "We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!"</s>The İzmir 3rd High Criminal Court on Friday rejected an appeal to release American Christian pastor Andrew Brunson from house arrest, Reuters reported.

Brunson’s previous appeal to the 2nd High Criminal Court was also rejected on Tuesday.

Brunson, an evangelical pastor residing in the coastal province of İzmir, is standing trial in Turkey over terrorism charges. His case now lies at the heart of a diplomatic crisis between Turkey and the United States that has prompted a crash of Turkey’s lira currency.

The lira, which has lost some 40 percent of its value this year, weakened beyond 6.21 against the US dollar after the news, from 6.04 beforehand.

“Turkey has taken advantage of the United States for many years. They are now holding our wonderful Christian Pastor, who I must now ask to represent our Country as a great patriot hostage. We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!” US President Donald Trump tweeted on Thursday.

The US had previously imposed sanctions on Turkey’s justice and interior ministers over the Brunson case.</s>(AP Photo/Lefteris Pitarakis). A man walks out of a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with majo...

ANKARA, Turkey (AP) - The Latest on Turkey's currency crisis and diplomatic dispute with the United States (all times local):

Turkey's state-run news agency says a higher Turkish court has also rejected an appeal for the release from detention of an American pastor who is at the center of a Turkish-U.S. spat.

Anadolu Agency said a high court in Izmir upheld a lower court's decision earlier this week to keep pastor Andrew Brunson under house arrest. It also rejected an appeal for his travel ban to be lifted, Anadolu reported.

Brunson's continued detention has aggravated a feud between the NATO allies and has helped trigger a Turkish currency crisis.

U.S. President Donald Trump's administration on Thursday signaled new sanctions against Turkey over Brunson's detention and Turkey said it would reciprocate.

Turkey's currency remains steady against the dollar despite an apparent threat of possible new sanctions by U.S. President Donald Trump.

The Turkish lira stood at 5.80 per dollar on Friday, up about 0.4 percent against the dollar.

The currency has recovered from record lows earlier this week. Investors, already worried about Turkey's economy, were irked by a diplomatic and trade dispute with the United States over the continued detention of an American pastor Andrew Brunson on espionage and terror-related charges.

In a tweet on Thursday, Trump urged Brunson to serve as a "great patriot hostage" while he is jailed and criticized Turkey for "holding our wonderful Christian Pastor."

Trump added: "We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!"

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>A Turkish court again rejected an appeal to release American Christian pastor Andrew Brunson from house arrest, broadcaster Haberturk said on Friday.

Brunson, an Evangelical pastor residing in the coastal province of Izmir, is standing trial in Turkey over terrorism charges.

His case now lies at the heart of a diplomatic crisis between Turkey and the U.S. that has prompted a crash of Turkey’s lira currency.

The lira, which has lost some 40 per cent of its value this year, weakened beyond 6.21 against the U.S. dollar after the news, from 6.04 beforehand.</s>Only hours after a Turkish court rejected an appeal on Friday for the release of a U.S. pastor from house arrest, President Donald Trump said Ankara had acted "very, very badly" in the case and the United States was "not going to take it sitting down."

Turkey has been holding pastor Andrew Brunson for two years on charges that he is linked to the Fethullah Gülen Movement, which Turkey says was responsible for a failed coup attempt in 2016.

The 50-year-old pastor and the U.S. government vehemently deny those charges.

"They made up this phony charge that he is a spy, and he is not a spy," Trump told reporters.

A higher court in Izmir upheld a lower-court decision that rejected the lifting of Brunson's house arrest, according to the state-run Anadolu agency and the newspaper HaberTurk. It also rejected an appeal for his travel ban to be lifted, Anadolu reported.

"They should have given him back a long time ago," the president said. "And Turkey has in my opinion acted very very badly. We haven't seen the last of that. We are not going to stake it sitting down. They can't take our people."

Even before Friday's court decision, Trump — who calls Brunson "our wonderful Christian pastor" — had warned of new economic sanctions if the protestant clergyman is not freed

"We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!!" he said in a tweet Friday.

The U.S. recently slapped financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey over the pastor's continued detention, causing economic upheaval in Turkey.

In retaliation, Turkey on Wednesday imposed tariffs on certain U.S. goods.

The Turkish lira fell 5 percent Friday after the Turkish court released its decision.

Brunson, who attended Wheaton College, has lived in Turkey for more than two decades as pastor of a small local church. Vice President Mike Pence has been especially outspoken on the Brunson case, particularly before Christian audiences.

On Tuesday, Pence tweeted that Brunson is innocent and "justice demands that he be released." He said Turkey would "do well not to test @POTUS Trump's resolve" over the issue.

Turkish President Recep Tayyip Erdogan has bristled at such U.S. pressure.

“I call out to those in the United States. It is a shame,” Erdogan said in a speech on Saturday. “You are trading a strategic NATO ally for a priest.”

Brunson was indicted on charges of “acting in a parallel and coordinated fashion” with Turkey’s two chief enemies: the Kurdistan Workers’ Party, or PKK, and a network run by Gülen.

U.S. authorities have rebuffed efforts by Turkey for the extradition of Gülen, who lives in Pennsylvania.

Erdogan, hinting at a trade for Brunson, said in a speech last year that if the U.S. turned over Gülen to the Turkish authorities "we will do what we can in the judiciary to give you this one."</s>ANKARA, Turkey (AP) — The Latest on Turkey's currency crisis and diplomatic dispute with the United States (all times local):

U.S. President Donald Trump is condemning the detention of an American pastor in Turkey and warned that "we are not going to take it sitting down."

Trump, before leaving the White House on Friday, denounced Turkey as a "problem for a long time" and said it made up a "phony" spying charge against Andrew Brunson.

Brunson was charged with terror offenses by a Turkish court and has been held since October 2016.

Trump said Turkey has "not acted like a friend." He demanded Brunson's release, saying "they can't take our people."

The Trump administration has threatened to levy more sanctions against Turkey, a move that has rattled the nation's financial markets.

Turkey is calling for the U.S. to extradite a Pennsylvania-based Muslim cleric accused engineering a 2016 coup attempt.

Turkey's state-run news agency says a higher Turkish court has also rejected an appeal for the release from detention of an American pastor who is at the center of a Turkish-U.S. spat.

Anadolu Agency said a high court in Izmir upheld a lower court's decision earlier this week to keep pastor Andrew Brunson under house arrest. It also rejected an appeal for his travel ban to be lifted, Anadolu reported.

Brunson's continued detention has aggravated a feud between the NATO allies and has helped trigger a Turkish currency crisis.

U.S. President Donald Trump's administration on Thursday signaled new sanctions against Turkey over Brunson's detention and Turkey said it would reciprocate.

Turkey's currency remains steady against the dollar despite an apparent threat of possible new sanctions by U.S. President Donald Trump.

The Turkish lira stood at 5.80 per dollar on Friday, up about 0.4 percent against the dollar.

The currency has recovered from record lows earlier this week. Investors, already worried about Turkey's economy, were irked by a diplomatic and trade dispute with the United States over the continued detention of an American pastor Andrew Brunson on espionage and terror-related charges.

In a tweet on Thursday, Trump urged Brunson to serve as a "great patriot hostage" while he is jailed and criticized Turkey for "holding our wonderful Christian Pastor."

Trump added: "We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!"</s>A Turkish court on Friday rejected an appeal for the release of a U.S. pastor from house arrest, despite warnings from President Donald Trump of new economic sanctions if he is not freed, Turkish media report.

Turkey has been holding pastor Andrew Brunson for two years over accusations that he is linked to the Fethullah Gülen Movement, which Turkey says was responsible for a failed coup attempt in 2016.

A higher court in Izmir upheld a lower court decision that rejected the lifting of Brunson's house arrest, according to the state-run Anadolu agency and the newspaper HaberTurk. It also rejected an appeal for his travel ban to be lifted, Anadolu reported.

The continued house arrest of the Protestant clergyman has been an increasingly contentious issue between Turkey and the U.S.

Trump said in a tweet on Thursday that Turkey is holding "our wonderful Christian pastor" who must now be considered a "great patriot hostage."

"We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!!" he added.

The 50-year-old pastor, who attended Wheaton College, is now being tried on espionage and terror-related charges. Brunson and the U.S. government vehemently deny those charges.

The U.S. recently slapped financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey over the pastor's continued detention, causing economic upheaval in Turkey.

Turkey imposed retaliatory tariffs of its own on Wednesday against certain U.S. goods.

The Turkish lira fell five percent Friday after the Turkish court released its decision.

Brunson has lived in Turkey for more than two decades as pastor of a small local church. Vice President Mike Pence has been especially outspoken on the Brunson case, particularly before Christian audiences.

On Tuesday, Pence tweeted that Brunson is innocent and "justice demands that he be released." He said Turkey would "do well not to test @POTUS Trump's resolve" over the issue.

Turkish president Recept Tayyip Erdogan has bristled at such U.S. pressure.

“I call out to those in the United States. It is a shame,” Erdogan said in a speech on Saturday. “You are trading a strategic NATO ally for a priest.”

Brunson was indicted on charges of “acting in a parallel and coordinated fashion” with Turkey’s two chief enemies: the Kurdistan Workers’ Party, or PKK, and a network run by Gülen.

U.S. authorities have rebuffed efforts by Turkey to win the extradition of Gülen, who lives in Pennsylvania.

Erdogan, hinting at a trade for Brunson, said in a speech last year that if the U.S. turned over Gülen to the Turkish authorities "we will do what we can in the judiciary to give you this one."</s>The American pastor jailed in Turkey on espionage and terrorism-related charges was praised by President Trump on Thursday who called him “a great patriot hostage” — and said the U.S. would “pay nothing for the release of an innocent man.”

Trump, in a tweet, condemned the Turkish government for taking “advantage” of the U.S. and added that while the administration would not pay for Pastor Andrew Brunson’s release, the U.S. is “cutting back on Turkey.”

Trump likely was referring to the increase in tariffs and sanctions he authorized last week — after which the Turkish economy took a tumble.

“I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%,” Trump tweeted Friday. “Our relations with Turkey are not good at this time!”

The Turkish lira weakened in value from 4.7 on the dollar to 6.4 on the dollar Friday, for the first time in history breaking the 6 mark.

FRUSTRATED SUPPORTERS OF PASTOR IN TURKEY KEEP UP THE PRESSURE

The Trump administration has threatened more sanctions if Turkey does not release Brunson.

The pastor has been detained in Turkey for 21 months on “terrorism” charges – suspected of having ties to the outlawed Gulenist movement – along with espionage accusations. Turkish President Recep Tayyip Erdogan has demanded the U.S. extradite Fethullah Gulen, a Muslim cleric who denies Turkish allegations that he engineered a failed 2016 coup.

U.S. State Department representatives have said the claims against Brunson are not credible. The pastor faces a prison sentence of up to 35 years if convicted.

National Security Adviser John Bolton spoke Monday with the Turkish ambassador to the United States and told him to release Brunson, U.S. officials said. The administration has threatened more sanctions if Turkey does not comply.

Fox News’ Hollie McKay and The Associated Press contributed to this report.</s>ISTANBUL (Reuters) - Turkey’s battered lira weakened 5 percent on Friday after a Turkish court rejected a U.S. Christian pastor’s appeal for release, a day after the United States warned of further sanctions unless Ankara hands over the detained minister.

The currency has lost nearly 40 percent of its value against the dollar this year, hit by Ankara’s worsening rift with Washington and investor alarm about President Tayyip Erdogan’s influence over monetary policy. Erdogan, a self-described “enemy of interest rates”, wants to lower borrowing costs despite high inflation.

The lira crisis has deepened concerns about the broader economy - particularly Turkey’s dependence on energy imports and whether foreign-currency debt levels pose a risk to the banking sector.

“There has been no sign that the central bank will be allowed to raise interest rates significantly and return rates to positive territory,” said William Jackson of Capital Economics in a note to clients. “Similarly, there has been no improvement in relations with the U.S. and additional sanctions may be on the horizon.”

At 1256 GMT the currency TRYTOM=D3 stood at 6.1050 to the dollar, 5 percent weaker. Earlier in the session it fell as much as 7 percent.

A court in the western province of Izmir rejected an appeal to release the pastor, Andrew Brunson, from house arrest, saying evidence was still being collected and he posed a potential flight risk, according to a copy of the court ruling seen by Reuters.

Brunson, from North Carolina, is under house arrest as his trial on terrorism charges continues. He has denied the charges, and his case has been taken up by U.S. President Donald Trump, who counts evangelical Christians among his core supporters.

U.S. Treasury Secretary Steven Mnuchin told Trump at a cabinet meeting on Thursday that sanctions were ready to be put in place if Brunson were not freed.

Trump later said in a tweet the United States “will pay nothing” for Brunson’s release, “but we are cutting back on Turkey!” He called Brunson “a great patriot hostage.”. Turkish officials say the case is a matter for the courts.

Turkish sovereign dollar bonds fell, while the cost of insuring exposure to Turkish debt rose.

The Turkish banking watchdog has taken steps to stabilize the currency, limiting futures transactions for offshore investors and lowering limits on swap transactions. But some economists have called for more decisive moves.

Turkey and its firms face repayments of nearly $3.8 billion on foreign currency bonds in October, Societe General has calculated. For companies, the cost of servicing foreign debt has risen by a quarter in lira terms in the past two months.

Standard & Poor’s is scheduled to release a review of Turkey’s sovereign credit rating after market close on Friday.

One currency trader said Friday’s lira weakness was driven by “the new U.S. sanctions threat and the S&P decision, with position-closing in markets ahead of the public holiday”.

Turkish markets will be closed from midday on Monday for the rest of the week for the Muslim Eid al-Adha festival.

Finance Minister Berat Albayrak, Erdogan’s son-in-law, told investors on Thursday that Turkey would emerge stronger from the currency crisis, insisting its banks were healthy and signaling it could ride out the dispute with Washington.

Economists gave Albayrak’s presentation a qualified welcome and the lira initially found some support, helped by Qatar’s pledge to invest $15 billion in Turkey.

However, deep concerns remain about the potential for damage to the economy. Turkey is dependent on imports, priced in hard currency, for almost all of its energy needs.

For years Turkish firms have borrowed in dollars and lira to take advantage of lower interest rates. But the sell-off has increased the cost of servicing that debt, particularly for companies whose revenues are solely in lira.

Turkey has the highest foreign exchange-denominated debt among emerging markets, Societe Generale said in its note on Friday, estimating its short-term external debt at $180 billion and total external debt at $460 billion.

The crisis is also threatening efforts by Turkish banks to refinance syndicated loans. The currency crisis escalated shortly after banks embarked on their second biannual loan refinancing round in early August.

Reuters reported earlier this month that banks had also started to sell some project finance loans to foreign lenders, to free up cash as they face higher funding costs and pressure from Erdogan to lend more cheaply.

The president has remained defiant, calling on Turks to sell their gold and dollars for lira, describing the crisis as an “economic war”.

Despite that, foreign currency deposits held by local investors rose to $159.9 billion in the week to Aug. 10, from $158.6 billion a week earlier, central bank data showed on Thursday.
A high court in İzmir, Turkey, rejects an appeal to release U.S. pastor Andrew Brunson.