Indian rupee weakened to a record low against US dollar on Monday, tracking broader weakness in other emerging market currencies, due to concerns of a spill-over from a crisis-hit Turkey. Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish lira sent all emerging market currencies sharply lower. The lira has fallen about 45% against the greenback this year on worries over Turkish President Tayyip Erdogan’s increasing control of the economy and a deepening diplomatic rift with the United States. The rupee tumbled further on buying of American currency by banks and importers. Meanwhile, traders are also cautious ahead of Consumer Price Index-based (CPI) inflation data for June due later today.
The partially convertible currency is currently trading at 69.45, weaker by 62 paisa from its previous close of 68.83 on Friday. The currency touched a high and low of 69.6200 and 68.4175 respectively. The reference rate for the dollar stood at 68.95 and for Euro stood at 78.99 on August 10, 2018. While the RBI’s reference rate for the Yen stood at 62.15, the reference rate for the Great Britain Pound (GBP) stood at 88.19. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
