Rupee tumbles to lifetime low of 70.09 against US Dollar
Reversing all its early gains, the Rupee today collapsed to a lifetime low of 70.09 against the US Dollar, falling 16 paise amid fears that the Turkish currency crisis, which sent shockwaves through markets, could lead to a global financial meltdown. The Rupee had, yesterday, plunged by Rs. 1.08, or 1.57%, to a record low of 69.93 against the US currency. Here's more.
Weakening Rupee to complicate RBI's job of keeping inflation under-control
The ongoing currency turmoil in Turkey dampened investors' sentiments globally. Investors are turning to USD as a safe haven with Turkey's currency lira crisis continuing since the last week. The Guardian says Turkey's worsening financial crisis could have a "domino effect on other vulnerable countries." The Rupee is among the hardest hit and the RBI may find it difficult to keep inflation in check.
