Rupee crashes by Rs 1.08 to all-time low of 69.91 in opposition to US greenback on Turkish Lira shock

Mumbai: The rupee on Monday crashed by Rs 1.08 or 1.57 p.c to finish at a historic low of 69.91 in opposition to the US forex amid a world rout in currencies following fears that Turkish financial disaster may engulf world financial system.

The US greenback strengthened in opposition to the world currencies after the Turkish Lira dived nearly eight p.c, sparking a sell-off in world markets.

“The rupee was primarily impacted by fall in Turkish Lira,” mentioned a treasurer of a state-owned financial institution.

Representational picture. Reuters.

Lack of FII inflows and rising oil costs are additionally affecting the rupee, he added.

Overseas traders offered shares price Rs 971.eight crore on a internet foundation, provisional trade knowledge confirmed.

“RBI is not going to be comfy at these ranges. It was seen defending rupee in any respect ranges,” mentioned a senior treasury official of a public sector financial institution, whereas predicting that the rupee might fall to 70 ranges in opposition to the greenback quickly.

The rupee had opened robust by 41 paise at 68.42 in opposition to the US greenback in early commerce on Monday, helped by revived sentiments following optimistic macroeconomic outlook.

Nonetheless, it quickly plunged to a low of 69.62in keeping with weakening home equities and meltdown in world markets.

Suspected RBI intervention helped it get better from heavy losses, however heavy greenback demand pushed the rupee to shut on the all-time low stage of 69.91, a fall of Rs 1.08 or 1.57 p.c over the earlier shut.

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