Rupee breaches all-time low of 70.09 on Turkish crisis

RSTV Bureau
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File Photo

Rupee crashes to all-time low of 70.09 against US dollar on Tuesday over Turkey crisis.

The rupee on Monday crashed by a mammoth 110 paise — its biggest single-day fall in five years — to end at a lifetime low of 69.93 as the US dollar gained rapid strength amid fears that economic crisis in Turkey could spread to other global economies.

Panic and capitulation overshadowed trading mood as traders and speculators saw no signs that monetary authorities would step into the foreign exchange market to support the domestic unit.

The rupee was mainly impacted by fall in Turkish Lira, said a treasurer of a state-owned bank.

The Turkish lira dived almost 8 per cent on Monday to a low of 7.24 against the US dollar, fuelling fears that it may impact financial institutions in Europe. Later, it recovered some ground after the finance ministry assured steps to rein in the crisis.

India’s foreign exchange reserves fell to over seven-month low of USD 402.7 billion in the week ended August 3. Total forex reserves dipped USD 1.49 billion from USD 404.19 billion in the week ended July 27, 2018, RBI data showed.

(With PTI inputs)