New Delhi: For the first time ever, the rupee breached the 70 mark against the US dollar on Tuesday. On Monday, rupee had posted its weakest ever loss of Rs 1.09 against the US dollar.
On Tuesday, the rupee gained 23 paise in early trade. The rupee hit an all-time low of 70.1 per dollar at about 10:30 am, extending it to 70.09 on concerns over Turkey's economic woes.
According to analysts, the rupee is expected to fall further to below 70 per dollar.
"Panic demand of dollars from importers and strength in the dollar index pulled the rupee today. Also, intervention from Reserve Bank of India (RBI) is very limited in the forex market," said Rushabh Maru, Research Analyst, Anand Rathi Share and Stock Brokers.
"Given the prevailing risk aversion in the global markets, we don't rule out that the rupee will briefly cross 70/dollar before retracing to 69/dollar levels," said Aditi Nayar, principal economist at credit ratings agency ICRA.