Rupee vs dollar: Indian currency hits new all-time low of 70.32, plunges 43 paise

Rupee vs dollar: In the wake global developments and strong demand for the US currency, downslide of Indian rupee continues as it slumped 43 paise against the American currency to trade at a life-time low of 70.32 today. At the Interbank Foreign Exchange, rupee opened at a record low of 70.25 a dollar, down from its previous close of 69.89, and weakened further to trade at a fresh low of 70.32, down by 43 paise.
 
According to forex dealers, besides strong demand for the American currency from importers, capital outflows mainly weighed on the local currency.
 
The domestic currency has also been hit by a sharp surge in trade deficit, which soared to a near five-year high of USD 18 billion, according to the commerce ministry data released on Tuesday showed.
 
On the international front, depreciation of the Turkish lira against the dollar after the US imposed tariffs on steel and aluminium imports also put pressure on the Indian rupee, forex dealer reportedly said.
 
The local currency had gained 4 paise to close at 69.89 against the dollar in the previous session on Tuesday. 
 
Despite its early gains, the rupee on Tuesday had collapsed to a life-time low of 70.09 against the US dollar, falling 16 paise amid fears that Turkish economic crisis could lead to a global financial meltdown. At the interbank foreign exchange market.
 
Previously, the rupee had dropped 2.4 per cent or 148 paise in a single day in August 2013.
 
The Turkish Lira has lost more than 40 percent against the dollar this year, largely due to worries about President Tayyip Erdogan`s influence over the economy, his repeated calls for lower interest rates, and worsening ties with the United States, a Reuters report had said. 
 
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Notably, forex market was closed yesterday on account of Independence Day.
 
The BSE Sensex fell by 207.03 points, or 0.54 per cent, to 37,644.97 points in early trade. 
 
According to provisional data, foreign institutional investors (FIIs) also sold shares worth a net of Rs 378.84 crore on Tuesday.