The Indian rupee on Tuesday crashed to all-time low of 70.09 against US dollar after regaining from Monday's low of 69.91 by 23 paise to 69.68 against the US dollar in opening trade at the interbank foreign exchange market. The stock markets opening with renewed gains was one of the reasons that boosted the domestic currency, dealers said.
It was Monday blues for the rupee as it dropped by Rs 1.08, or 1.57 per cent, to a record low of 69.91 against the US Dollar.
The market was gripped by the fear that the Turkish currency turmoil could turn into a global financial crisis. However, latest data for the domestic economy showed that retail inflation fell to nine-month low of 4.17 per cent in July on declining vegetable prices which may prompt the Reserve Bank to pause interest rate hike in its next monetary policy review.
The next bi-monthly RBI Policy will be announced on October 5. In the previous two reviews, the RBI had raised the key repo rate by 0.25 per cent each on inflationary concerns.