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Rupee Plunges To Record Low of 69.62 against Dollar

The Rupee touched an all-time low of 69.62 per dollar in early trade on Monday, tracking broader weakness in other emerging market currencies on concerns of a spill-over from a crisis-hit Turkey.

The Reserve Bank of India was seen intervening to stem a sharp fall in the rupee as per market reports.

“The RBI was there to curtail the volatility in early trade, but not in a big way,” said a senior dealer at a foreign bank.

The Rupee reversed marginally from its record lows to trade at 69.53 to the dollar. It had ended at 68.84 to the dollar on Friday. The 10-year benchmark bond yield rose to 7.80% from its previous close of 7.75%, tracking the weakness in rupee.

Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.

The lira has fallen about 45% against the greenback this year on worries over Turkish President Tayyip Erdogan’s increasing control of the economy and a deepening diplomatic rift with the United States.

“There is no point spending a lot of dollars in defending a rupee when the force of the fall is so strong across emerging markets,” said a senior forex dealer at an Indian state-run bank.

The next crucial level for the rupee is 69.80 to the dollar, he added.

Traders will also watch out for India consumer inflation data for July due after market hours for further direction. A Reuters poll estimates July\ inflation of 4.51% compared with a five-month high of 5.0% hit in the
previous month.

Meanwhile, the BSE Sensex fell over 288 points and the NSE Nifty dipped below the 11,400-level in opening trade today on heavy losses in PSUs, auto, metal and banking counters amid a global rout in equity markets.

The rupee’s previous record low was 69.13, marked on July 20, 2018. On Friday, the rupee had lost 15 paise to end at 68.83 against the resurgent dollar.

The rupee crashed to a record low of 68.86 against the American dollar! Is this the lowest level yet?

The rupee crashed to a record low of 68.86 against the American dollar, plunging 30 paise on Thursday amid sustained foreign fund outflows and the greenback’s surge in overseas markets.
The Indian currency had earlier hit its all-time intra-day low of 68.85 and closed at 68.80 on August 28, 2013.
Forex dealers said besides a strong month-end demand for the American currency from importers, continued capital outflows by foreign funds and the dollar’s bull run on an imminent hike in Fed’s interest rates, mainly weighed on the domestic currency.

Further, a lower opening of the domestic equity market also put pressure on the rupee, they said.
The rupee had shed 31 paise to close at a new nine-month low of 68.56 against the dollar on Wednesday.
The Indian currency shrunk 2.92 per cent since Donald Trump’s victory in the US Presidential polls earlier this month.

A huge outflow of capital by foreign investors has been weakening the rupee as they apprehend an impact on the economy in the short-term following the India’s move to demonetise Rs 500 and Rs 1,000 banknotes. Surging US bond yields and a strong dollar overseas are also contributing to the rupee’s fall.
Meanwhile, the BSE Sensex fell by 145.97 points, or 0.56 per cent, to 25,905.84 points in early trade.