As rupee sinks to historic low, Modi govt blames 'external factors'

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

In India, on Monday morning, increased demand for USA currency from importers and banks amid fresh foreign fund outflows hit the rupee sentiment, according to forex traders.

Garg also said that while the Reserve Bank of India had sufficient foreign exchange reserves, its intervention in the currency market may not be of much help as of now, as the weakness in the rupee was a result of global factors.

Nervous investors were keeping an eye on developments in Ankara after yesterday's bloodletting that saw the lira hit record lows against the dollar and euro, and equity markets go into freefall on concerns Turkey's financial crisis could spread globally. This has come on the back of the rupee's weakest ever loss of Rs. 1.09 against the United States dollar on Monday.

However, the rupee erased all morning gains to hit an all-time low of over 70 a dollar.

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However, just 149 seconds later, the hosts restored parity through Joselu . "They've got a great team with a lot of threats all over the pitch".

The US dollar has gained strength as experts fear that the economic crisis in Turkey could soon spill over its impact on global economies.

The currency traded at 69.93 on Monday against its Friday's close of 68.83, which was a biggest single session decline against the dollar since September 3, 2013. The recent increase in inflation has led the Reserve Bank of India (RBI) to increase the repo rate by 25 basis points twice in two months. The next bi-monthly policy is to be unveiled on October 5.

With the rupee recuperating from initial loss, the benchmark Sensex recovered by almost 185 points to 37,829.93 in early trade.

On Monday, the rupee had depreciated by 1.57 per cent, to a record low of 69.91 against the U.S. currency amid fears that Turkish currency turmoil can unfold into the global crisis.

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