Published: Tue, August 14, 2018
Money | By Bruce West

Rupee Crosses 70 Per Dollar! Indian Currency Hits All-Time Record Low

Rupee Crosses 70 Per Dollar! Indian Currency Hits All-Time Record Low

The government has blamed external factors for the depreciation, which it said will ease going forward, PTI reported.

Technical pattern indicates that the rupee could further depreciate towards 71 per dollar. There is "nothing at this stage to worry".

Mumbai: Rerversing all its early gains, the rupee on Tuesday collapsed to a life-time low of 70.09 against the United States dollar, falling 16 paise amid fears that Turkish economic crisis could lead to a global financial meltdown. It, however, recovered from the all-time low.

"The Indian rupee just gave the Supreme Leader a vote of no confidence, crashing to a historic low", Rahul Gandhi, president of the main opposition Congress party, said in a tweet referring to his rival Modi.

"A slowing Chinese economy, tightening monetary policy and an escalating trade war are some of the main reasons for this turmoil into currency markets as sentiments towards emerging markets are worsening". 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.

Salil Datar, CEO and executive director, Essel Finance VKC Forex, said, "The current drop in Rupee is mainly due to the crisis in Turkey". At 10:35am, the rupee was trading at 70.07 a dollar, down 0.21% from its previous close of 68.93.

The corresponding rates were 69.4685 and 79.1876, yesterday.

The currency crisis in Turkey, which had a massive impact on Asian markets on Monday, began after President Recep Tayyip Erdogan asked citizens to exchange gold and dollars into the lira as the country's currency dropped almost 19% due to worsening relations with the United States.

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