Former RBI governor Raghuram Rajan, while reacting to fall in rupee, said that he was not too concerned about the domestic currency as "it is more a factor of dollar strength rather than necessarily rupee weakness".

“I think the Rupee has been strengthening in real terms for quite some time. The inflation rate has been modest but slightly above world inflation rates and as a result the rupee needs a modest weakening over time," said Rajan.

Rajan believes that the state of emerging markets is way better than what it was in 2013 and that rupee hitting an all-time low is not much of a concern.

Read More: Not too concerned about rupee hitting an all-time low, says Raghuram Rajan

“There are other countries which are in some situation of fragility because they have upcoming elections, they have a large current account deficit, they have a large fiscal deficit, but in general, emerging markets (EMs) look a lot better than they looked in 2013 when we had the taper tantrum,” he said.

On Thursday, rupee opened at record low 70.19 against the US dollar and further slipped to 70.26. It hit 70 to the dollar for the first time on Tuesday, falling 15 paise intraday due to sharp depreciation in Turkish lira. The rupee has fallen more than 9 percent year-to-date and around 2 percent in August.