Rupee breaches the 70 mark: How it's bad, and how it's good

Rupee Opens at Record Lows Against Dollar On Back of Turmoil in Turkish Lira

While today's drop comes as a result of turmoil with the Turkish lira the Indian rupee has been under pressure for most of 2018. Credit Reuters

However, according to an Economic Times report, Turkish lira, Russian ruble, Argentine peso have significantly weakened against the dollar.

The Indian rupee on Monday declined to 69.61 per dollar during the day after opening at a record low of 69.47.

This is the biggest single day fall for the rupee in the past five years.

Around 11 am, the rupee plunged to Rs 70.08 to a U.S. dollar. However, the Indian currency recovered later on heavy intervention by the Reserve Bank of India (RBI). Investors are turning to dollar as safe haven with Turkeys currency lira crisis continuing since the last week.

The intervention aided the rupee stabilise just a tad below 70 to a United States dollars at 69.98 around 11.05 a.m.

Iran's supreme leader says no war or talks with U.S.
Iran's supreme leader Ayatollah Ali Khamenei said Monday that there would be neither war nor negotiations with the United States.

Economic Affairs Secretary Subhash Chander Garg said external factors may ease going forward. There is "nothing at this stage to worry".

The currency crisis has been observed across Asian markets, causing a weakening in domestic equities, sparked majorly by the Lira crisis.

Forex dealers said selling of the greenback by banks and exporters supported the rupee.

On Monday, the rupee had sunk to 69.93, plunging by Rs 1.08 amid fears that the crisis in Turkey could manifest into a global financial crisis.

The RBI's monetary policy committee led by Governor Urjit Patel has increased interest rates twice since June to curb price pressures, while also using foreign reserves to check currency volatility.

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