Indian rupee plunges to record low at 69.80 against US dollar

The Indian Rupee Plunged to its Record Low Against US Dollar on Monday.
The Indian Rupee Plunged to its Record Low Against US Dollar on Monday.

The Indian Rupee (INR) touched an all-time low of 69.80 against the US dollar (USD) on Monday (13) following a weak trend in the currencies of developing countries.

Following a high volatility in the currency market, India’s central bank, Reserve Bank of India (RBI) was seen intervening the market. However, RBI’s intervention was mild and it was intended to limit the higher volatility in the early trade. INR has recorded a fall over 7.5 per cent so far in 2018. INR had closed at 68.84 against USD on last Friday (10).

Investors preferred safe havens such as the USD and the Japanese Yen after a plunge in the Turkish currency lira forced all the developing countries currencies to remain weak. The lira has tumbled about 45 per cent against USD in 2018 following concerns over Turkish President’s increasing grip over the domestic economy and thickening diplomatic issues with the United States.

Turkey’s central bank on Monday (13) said it was ready to take all possible measures to prevent fall of lira to ensure the financial stability of the country. The statement from the central bank came after the Turkish lira recorded a steep decline against USD.

Investors were seen waiting for India consumer inflation data for July which is expected after market hours for further direction. On Monday, India’s NSE Nifty 50 closed at 11,355.75 points, lower by 73.75 points or 0.65 per cent from its previous close whereas, BSE Sensex, closed at 37,644.90 down by 224.33 points or 0.59 per cent. The top gainers on BSE were, Infosys, Sun Pharma, Wipro, Mahindra and Mahindra and Coal India, while the top losers were Yes Bank, Vedanta, Tata Motors (DVR), SBI, and ONGC.