The dispute between the two North Atlantic Treaty Organisation allies - which reached new intensity over the detention of an American pastor in Turkey - has hammered the lira and also raised questions over the future partnership between Washington and Ankara.
The weakness of the Turkish currency has rippled through global markets, with its drop of as much as 18 percent on Friday hitting USA and European stocks as investors fretted about banks' exposure to Turkey.
The lira has lost more than 40 percent of its value this year on worries over Turkish President Tayyip Erdogan's increasing control over the economy and deteriorating relations with the United States.
Argentina's central bank surprised by raising interest rates by 5 percentage points on Monday, but it was still not enough to stop the peso hitting a record low.
Concerns about contagion from the lira's plunge weighed on Asian stock markets on Monday, with 24 out of 26 Asian indexes reporting declines.
Turkey has "solid and strong" economic dynamics in the face of the recent "economic siege" on the country, President Recep Tayyip Erdoğan said on Monday.
"The aim of the operation is to make Turkey surrender in all areas, from finance to politics", Erdogan told ruling party members in the Black Sea city of Trabzon.
"I here declare that we have seen your plot and we are challenging it", said Erdogan.
"We will overturn the scenarios that target our nation", he added.
He said the crash of the lira, sparked by his bitter dispute with the U.S., was a "political plot" against Turkey and warned that Ankara would now seek new markets and partners, AFP reported.
Oil prices inched higher in early Asian trade with Brent up 15 cents at $72.76 a barrel, while U.S. crude added 17 cents to $67.37.
Meanwhile, at the White House in Washington US National Security Adviser John Bolton met Serdar Kilic, Turkey's ambassador to the US.
"We are together in North Atlantic Treaty Organisation and then you stab your strategic partner in the back". The flip side of that is that with the U.S. -Turkey relationship on the rocks, Ankara will "almost certainly not comply with the U.S. demand that it buy less oil from Iran now".
"You dare to sacrifice 81-million (in) Turkey for a priest who is linked to terror groups?" He is facing up to 35 years behind bars if found guilty. Trump has called the preacher's detention a "total disgrace".
Brunson, a U.S. citizen, and Turkish resident for over two decades, was arrested in Turkey on charges of terrorism and espionage. "They should give up the priest immediately, they should have put him on the plane with the last delegation to the United States and said: 'Here, take him'". Erdoğan's reluctance to accept higher interest rates amid rampant inflation and mounting foreign debt has spurred fears among analysts that Turkey's once-vibrant economy could soon crash.
Turkey's finance minister Berat Albayrak said the central bank would start implementing an economic action plan, including cutting the lira reserve requirement ratio, a cash buffer held by banks.
People pass in front of into a jewellery shop where gold bangles are on display in Istanbul on August 8, 2018.
Erdogan has stood by his opposition to high interest rates, calling them an instrument of exploitation and dubbing himself the "enemy of interest rates". The Trump administration doubled tariffs on Turkish steel and aluminum last week and targeted Erdoğan's interior and justice ministers with financial sanctions two weeks ago over Ankara's detainment of an American pastor.