ISTANBUL—Turkey sharply raised tariffs Wednesday on some U.S. imports as a court kept a detained U.S. pastor under house arrest, extending a fight between the two NATO allies that has sent the country’s currency plummeting.

Despite the moves, the lira got a respite, rising against the U.S. dollar for the second day in a row, up 5.5% in recent trading, with one dollar buying 6.04 lira. Traders credited the rebound to a decision by the financial regulator Wednesday, the second this week, to tighten restrictions on banks’ foreign...