Rupee fall continues, hits record low of 70 against US dollar

At 10:35am, the rupee was trading at 70.07 a dollar, down 0.21% from its previous close of 68.93.

The Indian rupee and 10-year bond prices rose on Tuesday after retail inflation slowed to a nine month low, providing comfort to the government and Reserve Bank of India. However, the rupee erased all morning gains to hit an all-time low of over 70 a dollar. At 10:35am, the rupee was trading at 70.07 a dollar, down 0.21% from its previous close of 68.93. The home currency opened at 69.84 and touched a high of 69.75 a dollar.

The Indian rupee hit a record low of 70 to the dollar on Tuesday as emerging market currencies are sold off by investors spooked by the Turkish financial crisis. (Reuters File Photo)

The 10-year bond yield stood at 7.801%, from its previous close of 7.823%. Bond yields and prices move in opposite directions.

India’s retail inflation dropped to a nine-month low of 4.17% in July from 4.92% a month ago on the back of softening food prices and a favourable base. Core inflation eased to 6.1% from 6.4% a month ago.

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On Monday, the rupee had plunged by ₹1.08, or 1.57 per cent, to a low of 69.91 against the US currency amid fears that Turkish currency turmoil could turn out into global financial crisis.

Meanwhile, the benchmark BSE Sensex recovered 184.93 points, or 0.49 per cent, to 37,829.83 points in early trade on Tuesday.

(With PTI inputs)