Nightmare For Rupee, Crashes To Lifetime Low Of 70.09 Against The US Dollar

In a far reaching development the rupee 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.

This is the biggest single day fall for the rupee in the past five years. Previously, the rupee had dropped 2.4 percent or 148 paise in a single day in August 2013.

The ongoing currency turmoil in Turkey has dampened investors’ sentiments globally. The rupee also ended lower against the British pound, euro, and Japanse yen.

The rupee was mainly impacted by fall in Turkish lira, said a treasurer of a state-owned bank.

Investors are turning to dollar as safe haven with Turkey’s currency lira crisis continuing since the last week.

Earlier, the rupee had plunged by Rs 1.08, or 1.57 percent, to a record low of 69.93 against the US currency as the dollar gained rapid strength amid fears that economic crisis in Turkey could spread to other global economies.

Panic and capitulation overshadowed trading mood as traders and speculators saw no signs that monetary authorities would step into the foreign exchange market to support the domestic unit.