Qatar announces $15 billion direct investment to support Turkey

Qatar's emir and Turkey's president shaking hands
Turkish President Recep Tayyip Erdogan (R) meets with Qatari Emir Sheikh Tamim bin Hamad al-Thani in Istanbul, Turkey on May 18, 2018. Photo: Cem Oksuz/Anadolu Agency via Getty Images

Qatar will invest $15 billion to help support Turkey's floundering economy, according to Turkey's state-run Anadolu Agency.

Why it matters: The lira shot up 5.5% against the dollar following the announcement, bolstering its gains from this morning, per Bloomberg. Turkey is hoping to escape its current currency crisis without raising interest rates or turning to the International Monetary Fund, though it's unclear whether that will be possible.

Turkey doubles tariffs on U.S. alcohol and cars

People walk by a currency exchange in Turkey
People walk past a currency exchange shop in Istanbul. Photo: Chris McGrath/Getty Images

Turkish President Recep Tayyip Erdogan doubled tariffs to 140% on American alcohol and 120% on American cars, while also raising duties on U.S. goods like leaf tobacco, cosmetics, rice and coal, reports Reuters.

The big picture: The lira continued its rebound against the dollar Wednesday, despite Erdogan's move to further escalate trade tensions. The recovery is likely a result of steps taken by the country's banking regulator, which has restricted international access to the lira to prevent foreigners from shorting the currency, per CNBC.