Rupee plunges to 70 vs US dollar

Soon after the rupee hit the lowest ever, the Reserve Bank of India intervened to curb the fall

Fears over a rise in global protectionist measures, along with a strong US economy, dragged the Indian rupee to a fresh intra-day low of over 70 against the US dollar on Tuesday before recovering by a fraction at Rs 69.98. Around 11 am, the rupee plunged to 70.08 - lowest-ever - against the greenback. However, soon afterward, the Reserve Bank of India (RBI) is said to have intervened to curb the rupee's fall. The intervention aided the rupee to stabilise just a tad below 70 to a USD at 69.98 around 11.05 am.

"The fear of a rise in global protectionist measures along with a strong US economy pulled the Indian rupee lower to 70.08 during intra-day," said Anindya Banerjee, deputy vice-president for Currency and Interest Rates with Kotak Securities. Banerjee predicted an immediate range from Rs 69 to Rs 71 per US dollar. At 1.40 pm the rupee stood at 69.855 to a US dollar.

Graphic/PTI

"Around 70-70.08 level, the RBI might have intervened to protect the rupee. We saw some exporters selling in the market. So, that too supported it. But importers will jump into the market on every dip in the USD/INR given the turmoil in the global market," Rushabh Maru, research analyst, Anand Rathi Shares and Stock Brokers, said. "A decline in the WPI also provided support to the rupee. Market will now focus on the trade balance data for further direction," he said.

Attributing the fall in rupee value against the US dollar to "external factors", Economic Affairs Secretary Subhash Chandra Garg said there is nothing to worry about as long as the depreciation is in line with other currencies.

However, Congress chief spokesperson Randeep Surjewala said the 'Modinomics' has wreaked havoc on India's economy and left it in dire straits. He demanded that the PM make a statement on the steps being taken by his government to check the slide in the country's economy and give a boost to it.

'Rupee has given no-confidence to Modi'
With the rupee plunging to its lowest-ever level of 70.08 against the US dollar, Congress President Rahul Gandhi on Tuesday took a jibe at Prime Minister Narendra Modi saying the national currency has given a "no-confidence to the supreme leader".

"The Indian Rupee just gave the supreme leader, a vote of no-confidence, crashing to a historic low. Listen to the supreme leader's master class on economics in this video, where he explains why the rupee is tanking," Gandhi said in a tweet attaching a video of the Prime Minister in which he is mocking at the former UPA government over the rupee.

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