Turkey’s lira fell 1% on news that the Trump administration has decided to arm Kurdish troops in Syria, a possible blow to Turkish ambitions in the region.

Turkey’s President Recep Erdogan last month won a bitterly-contested constitutional referendum in a vote denounced as dodgy by international observers. A lot of votes in Turkey’s Kurdish Southeast weren’t counted, and the ascendance of Syria’s Kurds has long-range implications for Turkey’s stability.

Nonetheless, Turkey’s stock market registered a 2% gain in a broad-based rally, and the US-traded Turkey ETF (Ticker: TUR) was up 0.8% after the currency decline