The rupee stumbled to an all-time low of 70.09 against the US dollar on Tuesday, as Turkey’s economic woes showed no signs of easing off. However, the government allayed fears saying that the fall in the rupee was due to external factors and there was no need to worry at this stage.
“The external factors were expected to ease,” Subhash Chander Garg, economic affairs secretary at the ministry of finance, told television channels. Congress leader Rahul Gandhi took to Twitter to criticise the government’s economic policies.
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. pic.twitter.com/E8O5u9kb23
— Rahul Gandhi (@RahulGandhi) August 14, 2018
ALSO READ: How does the falling rupee impacts you? Read here
The 10-year benchmark bond yield inched up to 7.82 per cent after staying muted in early trade. The rupee has lost more than 8% this year, pushing up prices of imported goods such as petroleum products, commodities, electronics and engineering equipment. The Turkish lira has weakened 45 per cent against the dollar this year.
Meanwhile, a weaker rupee strengthened IT stocks. All 10 stocks of the Nifty IT index traded in the green at 11:24 am. The Sensex was at 37,799.66, up 154.76 points or 0.41% and the Nifty50 was at 11,408.40, up 52.65 points.
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