The Big Picture : Falling Rupee, Surging Markets

 The rupee on Tuesday extended its fall and breached the psychological 70-mark for the first time against the US dollar hitting a new low of 70.08 in intra-day trading. The currency had recorded its biggest intra-day fall in five years, hitting a low of 69.93, following a global currency crisis after the Turkish lira was battered. The rupee closed as the worst performing Asian as the contagion from the collapse of the Turkish lira spread to emerging markets. The rupee has been on the downslide this year, having slipped 9 per cent in 2018. The government today blamed "external factors" for the rupee's fall to an all-time low against the US dollar and said there is nothing to worry. Economic Affairs Secretary Subhash Chander Garg said external factors may ease going forward. Meanwhile, India's benchmark Sensex has been on a strong run this year, surging over 10.5 per cent. In recent weeks benchmark indices have hit record highs.

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