Turkish lira gained value against the U.S. dollar on Thursday shortly after the U.S. Embassy in Ankara announced full resumption of visa services for Turkish citizens.

The dollar/lira exchange rate dropped more than 1 percent to trade below 3.77 by around 6 p.m. local time (1500GMT), down from 3.8240 at Wednesday's close.

On Oct. 8, the embassy had suspended non-immigrant visas to Turkish nationals following the arrest of a local employee working at the U.S. Consulate in Istanbul, prompting a tit-for-tat response from Ankara.

Metin Topuz, a long-standing consulate employee, was arrested over ties to the Gülenist terror cult (FETÖ), the group behind last year's coup attempt in Turkey.

The U.S. Embassy in Ankara announced the full return of visa services earlier on the same day, ending the so-called visa crisis between the two countries.

Based on several assurances given by Ankara, "the Department of State is confident that the security posture has improved sufficiently to allow the full resumption of visa services in Turkey," the U.S. embassy statement said.

According to the embassy, Ankara assured the U.S. embassy that there were no additional local employees under investigation, that the local staff will not be detained or arrested for performing their official duties and that Turkish authorities will inform the U.S. government in advance if any local staff face detention.

The Turkish Embassy in Washington D.C., in turn, also announced lifting of restrictions on visa services, adding that it welcomed the U.S.' decision. The embassy stressed, however, that the Turkish government has given no assurances to Washington, refuting the U.S. embassy's earlier claim.

"We find it wrong to misinform the Turkish and the American public by claiming that the U.S. received assurances from Turkey," the statement said.

It also said Turkey was seriously concerned about legal cases in the U.S. involving Turkish citizens.