Rupee breaches 70 per dollar mark as Turkey concerns persist

Gladys Abbott
August 14, 2018

The Indian rupee hit the 70-per dollar mark for the first time, tumbling to a record low, as a Turkey-led rout in emerging-market currencies intensified losses.

The government on Tuesday blamed "external factors" for the fall of rupee to an all-time low against the USA dollar and said that there is nothing to worry about as of now, PTI reported.

Reports suggest heavy sell-off in global currencies, including Turkish lira, fuelled demand for safe-haven assets and caused the rupee to nosedive. However, soon afterwards, the Reserve Bank of India (RBI) is said to have intervened in the open market to curb the rupee's free fall.

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Economic Affairs Secretary Subhash Chander Garg said external factors may ease going forward. On Monday, the rupee ended at an all-time closing low, the currency closed the session 110 paise lower at 69.93, it was the biggest single-day fall in five years.

Turkey's lira remained under pressure in Asian trade today but markets in the region enjoyed a little more stability after the previous day's turmoil.

In a ray of hope for domestic economy, latest data showed that retail inflation fell to 9-month low of 4.17% in July on declining vegetable prices which may prompt the Reserve Bank to pause interest rate hike in its next monetary policy review.

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