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In a rare joint show of force, the Trump White House and the U.S. State Department has been operating in sync, which wouldn't be unusual during a normal presidency, but is exceptionally weird for the Trump regime.
The lira extended gains to 6 per cent after Qatar's Emir Sheikh Tamim Bin Hamad Bin Al Thani made the pledge after a 3-1/2-hour meeting with Erdogan in Ankara on Wednesday.
Emerging-market economies broadly are also in much better shape than 20 years ago, with stronger currency reserves, say strategists at Wells Fargo Investment Institute.
With the dispute between the USA and Turkey seeming to escalate by the day, the value of Turkey's lira currency against the dollar has plummeted, but Sanders rejected any blame on the U.S.'s part.
The Turkish lira has dropped to a series of record lows in recent weeks, having fallen 37 percent so far this year. Turkey has accused the United States of launching an "economic war" as part of a plot to harm the country's stability.
"The tariffs that are in place on steel won't be removed with the release of Pastor Brunson", Sanders said.
Andrew Craig Brunson, an evangelical pastor from Black Mountain, N.C., arrives at his house in Izmir, Turkey, on July 25.
Speaking of Brunson's case, Sanders said, "We feel that Turkey and specifically President Erdogan have treated Pastor Brunson. very unfairly, very badly".
The tit-for-tat tariffs were announced amid Turkey's rejection of a U.S. demand to release Brunson, the American pastor, who is sentenced to imprisonment in the country on espionage and terrorism-related charges for almost two years.
The American Center for Law and Justice (ACLJ) says that the charges are not legitimate and that Brunson was arrested primarily because of his Christian faith.
The lira - which lost just under a quarter of its value on Friday and Monday - however continued to claw back some ground on financial markets, rallying around five percent against the dollar.
In another high-profile case, a Turkish court ruled on August 15 to release from jail Taner Kilic, the local chair of Amnesty International, a researcher from the rights group said. Cavusoglu said ties with the bloc, long strained, were on a firmer basis and had started normalising.
Investors are anxious that about Erdogan's control over the central bank and his pressure to keep it from raising interest rates.
Despite the political tensions, the lira rebounded 6 percent on Wednesday, strengthening to about 6.0 to the dollar.
The finance minister will seek to reassure worldwide investors on Thursday in a conference call for which a ministry official said some far 3,000 people had signed up.
He added: "Our strong relations with the Republic of Turkey enjoy a special status among our people".
On Wednesday, a court rejected an appeal for Brunson to be released from house arrest.More news: Nick Jonas to take family to India to meet Priyanka Chopra's parents