Rupee plunge continues, crashes to all-time low of 70.08 against USA dollar

Andrew Cummings
August 14, 2018

The Indian rupee recorded a lifetime low during early trades on Tuesday as it hit 70.1 per dollar.

This is the steepest fall for the Indian rupee since September 2013.

The ongoing currency turmoil in Turkey has dampened investors' sentiments globally.

Investors are turning to dollar as safe haven with Turkey's currency lira crisis continuing since the last week. Almost three-fourths of the respondents believed the local unit could touch 69 to the dollar with some even pointing to 70 by December-end.

The fall in rupee is mainly due to the drop in Turkish Lira, which in turn helped the United States dollar to gain.

Forex dealers said selling of the greenback by banks and exporters supported the rupee. However, soon afterward the Reserve Bank of India (RBI) is said to have intervened in the open market to curb the rupee's free fall.

"There is nothing to worry at this stage". Subhash Chandra Garg, secretary at the department of economic affairs, said the rupee was still performing better than some other currencies, and that the country had sufficient foreign exchange reserves.

The currency crisis has been observed across Asian markets, causing a weakening in domestic equities, sparked majorly by the Lira crisis.

Other reports by iNewsToday