Rupee fall continues, hits record low of 70 against United States dollar

Rupee fall continues, hits record low of 70 against United States dollar

The rupee, however, recovered from the all-time low of 69.91 and strengthened by 23 paise to 69.68 against the United States dollar in opening trade at the interbank foreign exchange market today.

The rupee, which has fallen more than 8 percent this year, has pushed up prices of imported items such as petroleum products, commodities, electronics and engineering equipment, creating a headache for Prime Minister Narendra Modi ahead of a general election due early next year. This has strained emerging market currencies such as India.

Economic Affairs Secretary Subhash Chander Garg said external factors may ease going forward.

Turkey's currency has lost around 45% so far this year.

"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.

Asian currencies except Japanese yen trade on a weaker footing.

RBI's foreign exchange reserves were at $402.70 billion in the week ended August 3, down $1.49 billion over the preceding week, latest data released by the central bank showed.

Research Analyst at Anand Rathi Shares and Stock Brokers, Rushabh Maru said the rupee extended losses today on account of panic demand from importers.

The reason behind the fall in rupee was because of the drop in Turkish Lira, and the USA dollar gaining rapid strength amid fears that the economic crisis in Turkey could spread to other global economies.

The intervention aided the rupee stabilise just a tad below 70 to a Dollars at 69.98 around 11.05 a.m. He opined that on a medium term basis, the rupee will need to depreciate further to keep up with the inflation differentials with other trading partners.

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