Rupee fall due to external factors: Government

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. “Rupee is depreciating due to external factors,” he said. There is “nothing at this stage to worry”.

The rupee hit an all time low of 70.1 to a US dollar earlier today on concerns over Turkey’s economic woes. Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers, said the rupee extended losses today on account of panic demand from importers.

“Given the uncertainty surrounding Turkey crisis and strength in the dollar index, importers are buying dollars aggressively. The RBI has been intervening very selectively in the market. Hence, an absence of aggressive intervention by the RBI has spooked the market,” he said.