For The First Time Ever, Rupee Breaches The 70-Mark Against US Dollar

For The First Time Ever, Rupee Breaches The 70-Mark Against US DollarAn Indian bank employee checks stacks of new 2,000 rupee notes (SAM PANTHAKY/AFP/Getty Images)

After hitting an all-time low of 69.93 yesterday (13 August) against the US dollar, the rupee today (14 August) breached the 70 mark in the face of Turkey’s persisting economic woes, Reuters has reported. The report claimed that rupee reached a low of 70.1 per dollar during trading.

The rupee is said to have been facing the effects of falling Turkish currency Lira which has fallen about 45 per cent against the dollar this year.

A senior treasury official of a public sector bank told Times of India that the Reserve Bank of India would not be comfortable with this development as it has been seen defending the rupee at all levels.

A weaker rupee could make it difficult for the central bank to keep inflation in check.
Economic affairs secretary Subhash Chander Garg has blamed external factors for fall of the rupee.

The principal economist at ICRA, Aditi Nayar was quoted as saying that the crude oil prices and movement in emerging market currencies and the strength of the dollar will drive the rupee exchange rate in the immediate term.

Fall in rupee exchange rate might impact the country’s import bill, trade deficit and short-term liabilities. However, it will increase the earnings of Indian exporters.