Turkey, meanwhile, is frustrated by the refusal of the U.S.to extradite a Pennsylvania-based Muslim cleric accused by Turkish authorities of engineering a 2016 coup attempt.
"The heightened tensions between the United States and Turkey caused the Turkish lira to take a leg lower, and this reignited fears that the European banking system could be shaken by either defaults or non-performing loans from Turkey", said market analyst David Madden at CMC Markets UK.
Ismail Cem Halavurt, Brunson's lawyer, applied to the higher court after the appeal was also rejected by Izmir's 2nd High Criminal Court on Wednesday.
Escalating tensions on trade between the United States and some of its largest trading partners had driven traders to sell emerging market currencies and take to the safety of the US currency.
Turkey retaliated with 533 million dollars (£419 million) of tariffs on some USA imports - including cars, tobacco and alcoholic drinks - and said it would boycott United States electronic goods. He said he was also considering an appeal to Turkey's constitutional court.
Credit rating agency Standard & Poor's is expected to downgrade Turkey's sovereign credit rating later today. Moody's stripped Turkey of its investment-grade rating in 2016 and Friday's move lowered it one rung further. Erdogan wrote in an op-ed last week for The New York Times: "The Turkish people expected the United States to unequivocally condemn the attack and express solidarity with Turkey's elected leadership".
Brunson, from North Carolina, is under house arrest as his trial on terrorism charges continues. "Would the amount of Turkey's debts decrease?"
Washington wants the evangelical Christian freed but Turkish officials say the case is a matter for the courts.
The US comments came after Finance Minister Berat Albayrak, Erdogan's son-in-law, assured investors on Thursday that Turkey would emerge stronger from its currency crisis, insisting its banks were healthy and signaling it could ride out the dispute. Trump added the pastor is a "very innocent man" and "we got somebody out for him - he needed help getting somebody out of some place".
On Thursday, Trump tweeted that the U.S. would "pay nothing" for the release of Brunson, but would punish Ankara if he is not released.
The President also sent a message directly to Pastor Andrew through Twitter, calling him a "wonderful Christian pastor" and letting Pastor Andrew know that he considers him a "patriot hostage".
White House press secretary Sarah Huckabee Sanders earlier criticized Turkey's move to impose tariffs on some US goods as "regrettable and a step in the wrong direction".