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Rupee plunges to all-time low at 69.91
Why in the news ?
- The rupee on 13 August crashed by Rs 1.08, or 1.57 per cent, and moved closer to the 70 level to end at a historic low of 69.91 against the US currency as the Turkish currency, lira, plunged, sending global currencies into a tailspin.
Details
- The lira weakened more than 8% on Monday amid mounting concerns over Turkish president hold over the economy and the deteriorating ties with the United States.
- Strength in the dollar against its major crosses is also weighing on the Asian currencies including the rupee.
- Forecasting that the rupee may fall to 70 levels against the dollar soon, dealers said the RBI will not be comfortable at the current rupee level. The RBI supported the rupee by selling dollars in the market.
- The rupee had opened strong by 41 paise at 68.42 against the US dollar in early trade Monday, helped by revived sentiments following optimistic macroeconomic outlook.
- However, it soon plunged to a low of 69.62 in line with weakening domestic equities and meltdown in global markets.
- Suspected RBI intervention helped it recover from heavy losses, but heavy dollar demand pushed the rupee to close at all-time low level of 69.91.
Source
The Hindu.