Rupee closes at new record low of 70.16 amid volatility in currency markets

Since the beginning of this year, it has declined by only 9.8%

The rupee continued to weaken further to close at a new record low of Rs 70.16 against the US dollar on Thursday, reflecting the volatility in global currency markets triggered by the crisis in Turkey and concerns over India’s rising trade deficit.

The Indian currency opened above Rs 70 and stayed over that crucial threshold through the day’s trading, according to Clearcorp Dealing Systems data. It slumped to an all-time low of 70.40 per dollar (intra-day) on persistent foreign fund outflows but recovered subsequently. 

Besides the upheaval in the international currency markets, weak data for India’s merchandise trade for July