The lira tumbled overnight Friday to a historic low of TL5.11 to the United States dollar, down 3.4 percent of its value against the dollar since the Trump administration's announcement of sanctions on two Turkish ministers Wednesday.
Turkey and the United States on Friday failed to resolve a diplomatic standoff over a detained pastor in talks between their top diplomats, with Ankara warning sanctions imposed by Washington would not work.
The NATO allies are also at odds over the Syrian war, Turkey's plan to buy missile defences from Russian Federation and the USA conviction of a Turkish state bank executive on Iran sanctions-busting charges this year. We turned to Ahmet Berat Çonkar, the head of Turkey's delegation to North Atlantic Treaty Organisation.
Berat Albayrak, Turkey's finance and treasury minister and President Recep Tayyip Erdogan's son-in-law, on Friday played down the idea that strains between the two countries would continue in the long term. He was recently moved from prison to house arrest.
On Friday, the two leaders agreed to work together to resolve tensions between the two countries.
Brunson, whose trial began in the spring, faces up to 35 years in jail if convicted.
"We reached agreement on resolving problems through close cooperation and dialogue", Cavusoglu told reporters, though he added that settling the dispute would take time.
"We are facing an economic war, but we will win it", Erdogan said, adding Turkey is issuing Chinese Yuan denominated bonds for the first time, and to overcome difficulties due to credit rating reports, Turkey is turning towards China for external borrowing.
The United States has also been seeking the release of three locally employed embassy staff detained in Turkey. "These are innocent people".
The lira hit a record low of 5.0934 to the dollar, recovering to trade at 5.0605 by 1434 GMT.
White House spokeswoman Sarah Sanders said that Brunson was a "victim of unfair and unjust attention by the government of Turkey" as she announced sanctions. He was also charged with supporting outlawed Kurdish PKK militants.
His lawyer's appeal for his release was rejected this week.
The case has been followed closely by America's evangelical Christian community, a key part of President Trump's support base. Gulen denies the allegations.