New Delhi: The Indian rupee on Tuesday tumbled to a record low after hitting the 70-per dollar mark for the first time ever. This comes in the wake of the dwindling value of Turkish Lira and increasing tensions between the USA and Turkey.
The Indian currency slipped to its lowest- as much as 0.2 percent at 70.08 per dollar and is currently among the hardest hit in Asia. The downward dip of the Indian Rupee will make it hard for the Reserve Bank of India to keep inflation in check.
Earlier, RBI’s monetary policy committee headed by Governor Urjit Patel had increased the interest rates twice since June to bring down price pressures besides using foreign reserves to check currency volatility of the Indian Rupee. Notably, the value of the Indian currency has slipped by 9 percent this year.
Trade analysts are of the opinion that the fall in the value of Indian Rupee is due to global factors like market currency fluctuations caused by the Turkish Lira crisis. News agency Bloomberg quoted Aditi Nayar, the Principal economist at ICRA who said- “Broader emerging currency market movement, dollar strength and the trend in crude oil prices will drive the outlook for the rupee in the immediate term”.