Indian rupee closes at all-time low of 69.91 on Turkish Lira shock; 70-level eyed

After opening at 68.42, 41 paise higher against the US dollar in early trade today, the Indian rupee witnessed a massive fall today. Rupee plunged 1.57 percent amid the Turkish currency crisis. Indian currencies fell to 69.91 against the US dollar amid a global rout in currencies, as traders fear that Turkish economic crisis could engulf world economy. The Indian currency had fallen to 68.84 against the US dollar on Friday, as the investors rushed to safe havens like the US dollar and the yen after Turkish Lira plunged, sending the ripple effect to all emerging market. 

The currency crisis also dragged down BSE's Sensex to 37,645, ending 224 points lower. On the other hand, the US dollar strengthened against the other currencies following the Turkish currency turmoil, which dived almost 8 percent, sparking a sell-off in global markets.  A treasurer of a state-owned bank said that the rupee was impacted by fall in Turkish Lira, lack of FII inflows and growing oil prices, PTI reported.

The currency tumbled to the level that is beyond the central bank's comfort level. A senior treasury official of a public sector bank predicted that the rupee may fall to 70 levels against the dollar soon. The rupee's strong opening against the US dollar in early trade today was on the back of revived sentiments following optimistic macroeconomic outlook.

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However, later in the day, it plunged to a low of 69.62 as domestic stock market weakened and global markets went into a meltdown. Though the expectation of RBI intervention helped recover to some extent, heavy demand for dollar pushed the rupee to close at all-time low level of 69.91. 

Indian stock market too today saw a huge plunge, with energy and baking stocks falling heavily.