Rupee recovered from initial dip against US dollar. (Express Photo)
The rupee on Tuesday hit a record low breaching the Rs 70 mark against the US dollar in opening trade. On Monday, the rupee had plunged by Rs 1.08, or 1.57 per cent, to a record low of 69.91 against the US currency amid fears that Turkish currency turmoil could turn out into global financial crisis.
With the rupee recuperating from initial loss, the benchmark Sensex recovered by nearly 185 points to 37,829.93 in early trade. Besides strengthening rupee, encouraging earnings by some blue-chip firms including Tata Steel also helped in building positive sentiments, PTI quoted brokers as saying. In a ray of hope for domestic economy, latest data showed that retail inflation fell to 9-month low of 4.17 per cent in July on declining vegetable prices which may prompt the Reserve Bank to pause interest rate hike in its next monetary policy review.
Also Read | Rupee crashes to all-time low of 70.09 against US dollar
While some were quite sceptical about how the domestic currency would fair in the ongoing Turkish currency turmoil, others couldn’t stop taking a jibe at the government and cracking jokes. Twitter buzzes on news of rupee falling down historically to rs 70 against Dollar. READ MORE HERE
The Rupee and the Modi government hit a record low, adding to the farmer suicides, scarce job creation, and rampant unemployment that abound. When will the PM and his party take responsibility for the deplorable state of the economy that their policies have created? says Jyotiraditya Scindia on the Rupee loss.
The rupee has been among the hardest hit in Asia from the recent Turkey-led sell-off in emerging assets, thanks to a wide current-account deficit that’s already strained by higher oil prices. A weaker rupee could complicate the Reserve Bank of India’s job of keeping inflation in check. READ MORE HERE
In the last two reviews, the RBI has raised the key repo rate by 0.25 per cent each on inflationary concerns. The next bi-monthly policy is to be unveiled on October 5. Domestic institutional investors (DIIs) bought shares worth a net Rs 216.29 crore while foreign portfolio investors (FPIs) sold shares worth a net Rs 971.86 crore yesterday, provisional data showed.
The ongoing currency turmoil in Turkey has dampened investors' sentiments globally. Investors are turning to dollar as safe haven with Turkeys currency lira crisis continuing since the last week. Yesterday, the rupee had plunged by Rs 1.08, or 1.57 per cent, to a record low of 69.93 against the US currency.
The rupee hit record low for the first time in history breaching the Rs 70/dollar mark. The rupee opened today recovering from an a low of 69.91 and strengthened by 23 paise to 69.68 against the US dollar in opening trade. Within a few minutes, the rupee plunged breaching the 70 mark to 70.08 to the dollar but recovered again to 69.97.