Indian Rupee hits fresh record low of 69.61 per Dollars

Rupee plunges against dollar tracking broader weakness in other emerging market currencies

The Indian rupee recorded a lifetime low during early trades on Tuesday as it hit 70.1 per dollar. On Monday, the rupee ended at an all-time closing low, the currency closed the session 110 paise lower at 69.93, it was the biggest single-day fall in five years. The cause of this fall has been attributed to fears over a rise in global protectionist measures, along with a strong USA economy. 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 69.91 against the U.S. currency amid fears that Turkish currency turmoil could turn out into a global financial crisis.

Stock markets opening with gains also boosted the domestic currency, dealers said.

Traders said, on the condition of anonymity, that rupee recouped some of the losses as state-run banks sold the dollar on behalf of the Reserve Bank of India. There is "nothing at this stage to worry". "The rupee is depreciating due to external factors which may ease as we go forward", Economic Affairs Secretary Subhash Chandra Garg told news agency ANI.

The Indian currency fell 66 paise in the early trade on Monday against its previous close 68.83 against the greenback.

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