Rupee has fallen to a new all-time low of 69.88 versus the dollar, depreciating by 1.527% in trade today as against previous closing. In early-trade on Monday, the domestic currency hit all time low of 69.53 against the dollar as losses in Turkish lira by over 8% dragged other emerging market currencies down which fuelled the demand for safe-haven investments.
Last week, the US President Donald Trump hinted at levying higher tariffs on metals that are imported from Turkey. The development resulted in losses for the Turkish Lira which fell to record lows. To provide support to the currency, the President of Turkey asked his countrymen to sell dollars and gold as a result massive sell-off was triggered in the global markets.
The Turkish currency has been hit for the fourth consecutive day and recorded a new low after its President gave no indications to back down in a tariff stand-off with the US. Meanwhile, with the spread of Turkish financial and economic crisis to the broader world, the MSCI Emerging Market Index also was dragged to its lowest point in over a year.
Indian rupee has been the worst Asian currency so far this year. At 4:21 pm, the rupee was quoting with menial gains at 69.83 for a dollar.