New Delhi: The rupee erased early gains to hit an all-time low of 70.1 per dollar on Tuesday, as concerns about Turkey's economic woes persisted. With this, the currency has depreciated around 10% in 2018.

The rupee had opened marginally higher at 69.98 against the dollar during opening trade but those early gains were erased soon.

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

In a ray of hope for domestic economy, latest data showed that retail inflation fell to 9-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.

In the last two reviews, the RBI had raised the key repo rate by 0.25 per cent each on inflationary concerns. The next bi-monthly policy is to be unveiled on October 5.

Stock markets opening with gains also boosted the domestic currency, dealers said. However, the dollar's strength against some currencies overseas capped the gains of the domestic unit.

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