Rupee crashes to an all-time low of 70.09 against US dollar

On Tuesday, the rupee crashed to all-time low of 70.09 against US dollar. Yesterday, the rupee had plunged by Rs 1.08, or 1.57%, to a record low of 69.91 against the US currency amid fears that Turkish currency turmoil could turn out into global financial crisis.

In a ray of hope for domestic economy, latest data showed that retail inflation fell to 9-month low of 4.17% in July on declining vegetable prices which may prompt the Reserve Bank to pause interest rate hike in its next monetary policy review.

In the last two reviews, the RBI had raised the key repo rate by 0.25% each on inflationary concerns. The next bi-monthly policy is to be unveiled on October 5.

Stock markets opening with gains also boosted the domestic currency, dealers said. However, the dollar's strength against some currencies overseas capped the gains of the domestic unit.

Meanwhile, the benchmark BSE Sensex recovered 184.93 points, or 0.49%, to 37,829.83 points in early trade today.