Rs crashes to record low of 69.91; retail inflation at 9-month low

Mumbai: The rupee on Monday crashed by Rs 1.08 or 1.57 per cent to end at a historic low of 69.91 against the US currency amid a global rout in currencies following fears that Turkish economic crisis could engulf world economy.

The US dollar strengthened against the world currencies after the Turkish Lira dived almost 8 per cent, sparking a sell-off in global markets.

"Fall in Turkish Lira mainly impacted the rupee, said a treasurer of a state-owned bank.

Lack of FII inflows and growing oil prices are also affecting the rupee, he added.

Foreign investors sold shares worth Rs 971.8 crore on a net basis, provisional exchange data showed.

The rupee had opened strong by 41 paise at 68.42 against the US dollar in early trade on Monday, helped by revived sentiments following optimistic macroeconomic outlook.

However, it soon plunged to a low of 69.62 in line with weakening domestic equities and meltdown in global markets.

In a related development, Retail inflation fell to a nine-month low of 4.17 per cent in July on account of slowdown in prices of vegetables and fruits, said government data released on Monday.

Based on Consumer Price Index (CPI), inflation for June has also been revised downwards to 4.92 per cent from the earlier estimate of 5 per cent, as per the Central Statistics Office (CSO) data released on Monday.