The lira slid on Monday with volatility rebounding, ending a week of relative calm as Turkish markets opened after public holidays.The dollar surged as much as 3.2 percent against the lira to 6.1951 as concerns over Turkey’s economy and US sanctions continued to linger.

One-month implied lira volatility, a gauge of expected swings in the currency, jumped above 40 percent after dropping during holidays last week. The lira has been battered in the past month as the US started imposing sanctions on two Turkish ministers amid a spat over a detained US pastor, adding to investor concerns over the government’s economic policies.

Turkey’s President Recep Tayyip Erdogan has called the turmoil an “economic war” waged by Washington. JPMorgan Chase has revised its forecast for Turkey’s growth next year to 1.1 percent from 2.8 percent, citing “worsening financial conditions and tighter liquidity conditions,” economist Yarkin Cebeci wrote in a report. “Coordinated policy action by the policy makers could put Turkey on a soft landing path where rebalancing is achieved with manageable collateral damage.”