Rupee breaches 70 per dollar mark as Turkey concerns persist

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This is the biggest single day fall for the rupee in the past five years.

The ongoing currency turmoil in Turkey has dampened investors' sentiments globally. Turkey's Lira fell more than 25 percent last week and extended the drop to a fresh record low above 7.00 per dollar.

The reason behind the fall in rupee was because of the drop in Turkish Lira, and the USA dollar gaining rapid strength amid fears that the economic crisis in Turkey could spread to other global economies.

Stock markets opening with gains also boosted the domestic currency, dealers said. However, according to an Economic Times report, Turkish lira, Russian ruble, Argentine peso have significantly weakened against the dollar.

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Economic Affairs Secretary Subhash Chander Garg said external factors may ease going forward.

The rupee slipped as much as 0.2 per cent to 70.08 per dollar in Mumbai and is down nearly 9 per cent this year in Asia's worst performance. There is "nothing at this stage to worry".

Traders said, on the condition of anonymity, that rupee recouped some of the losses as state-run banks sold the dollar on behalf of the Reserve Bank of India.

The weakness of the Turkish lira has strained market currencies in Asia.

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