Dropped and Breached: Rupee reaches a new low for the first time against Dollars

NEW DELHI: Only Tuesday the rupee extended its drop and breached the psychological 70-mark for the first time against the US dollar, reaching a new low of 70.08 in intra-day trading.

On Monday, the currency had registered its biggest intraday fall in five years, hitting a low of 69.93, following a global currency crisis after the Turkish lira was battered. The rupee closed as the worst performing Asian as the contagion from the collapse of the Turkish lira spread to emerging markets. The rupee has been on the downslide this year, having slipped 9 percent in 2018.

"The fall in rupee is in line with global decimated emerging markets currency, accentuated by the Turkish crisis," Sanjiv Bhasin, executive VP-Markets & corporate Affairs, India Infoline told a source.

At the Tuesday's early trade, rupee had recovered to some extent before tumbling again.

“Broader emerging-market currency movement, dollar strength, and the trend in crude oil prices will drive the outlook for the rupee in the immediate term,” news agency Bloomberg quoted Aditi Nayar, the principal economist at ICRA.