Mumbai : Caught in a fresh wave of global currency turbulence, the rupee fell sharply by 15 paise to end at 68.83 against the resurgent dollar amid fears of escalation in trade tensions worldwide.
The Indian currency hit a fresh 3-week low in early trade before regaining some lost ground. Forex market sentiment wobbled once again in line with sell-off in other emerging market currencies hit by the sudden wave of risk-off on mounting fears over a political crisis in Turkey. The Turkish lira plunged nearly 14 per cent after Turkish President Recep Tayyip Erdogan asked citizens to convert their dollars and other foreign currencies as well as gold holdings to local lira. US President Donald Trump also announced doubling steel and aluminium tariffs on Turkey, adding to pressure on that country’s troubled economy amid a diplomatic row. RBI is suspected to have intervened heavily to curb the rupee’s sharp slide on a day when overseas investors sold local securities leading to fund outflows.
Strong US dollar, which continued to enjoy trade wars and a hawkish central bank, predominantly put pressure on the rupee. The rupee opened with a steep fall at 68.82 against Thursday’s close of 68.68 at the Interbank Foreign Exchange (forex) market in the midst of global developments.