Rupee recovers 35 paise after breaching 70/$-mark; falls 10% in 2018

Cornelia Mascio
Agosto 14, 2018

The rupee plunged to historic lows of 70.1 per dollar on Tuesday, and erased early gains, as global concerns about Turkey's economic woes persisted.

After breaching the psychological mark of 70 per United States dollar, the rupee has staged a recovery of around 35 paise and trading near 69.77 level.

The under-pressure rupee touched 70.09 briefly during mid-morning trade as fears grow that the plight of Turkey's lira will spread to other emerging countries. On Monday, the rupee had tumbled 110 paise to close at 69.93 - its biggest single-day fall in five years.

The US dollar strengthened against world currencies after the Turkish Lira dived nearly 8 per cent, sparking a sell-off in global markets.

Asian currencies except Japanese yen trade on a weaker footing. At the day's low, the rupee fell to 70.08 per dollar, down 15 paise from Monday's close.

A weak trend in Asia coupled with sell-offs on Wall Street last week and a slump in the Turkish lira dampened the sentiment globally, brokers said.

The Reserve Bank of India also plays a crucial role by intervening in the market to protect the rupee.

The rupee's fall today was largely due to domestic reasons.

Reportedly, the rupee has lost 7.2 percent this year and remains one of the worst performing emerging market currencies.

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