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Turkey’s economic crisis pushes INR above 70 against Dollar

Looking at the rupee depreciation for the last several years, experts had feared that the rupee could cross the 70 level against the dollar. On Tuesday, this apprehension of experts has also come true. For the first time on Tuesday, the rupee crossed the 70 mark against the dollar.

After strong start against the dollar on Tuesday, the rupee began to fall and it touched the dollar at 70.07 level. For this fall in rupees, the economic crisis in Turkey is believed to be responsible.

Experts say that the dollar is constantly getting stronger due to falling of the Turkish currency Lira which in turn is having a direct impact on rupee. There has been an economic crisis in Turkey. For the last 4 years, the economy here is going through difficulties. In the case of growth, Turkey who once stood alongside China and India has gone backward today. Its trade deficit and rising debt have become a big problem for this. Here inflation is increasing fast. Because of this, Turkish Lira, which is the currency here, has fallen significantly against the dollar.
During the last one year, Turkish Lira has fallen to 45 percent against the dollar. Market Expert Sachin Sarvade says that Turkey’s economic crisis is responsible for the continued decline in the currency. He explains that Turkey is an emerging market. There is a fear in the mind of investors that if this can happen in the emerging market like Turkey, then such a crisis can be created in other markets like this.
After crossing the Rs 70 figure, the Reserve Bank of India can take some important steps. On this, Sachin says that RBI is constantly interfering to maintain balance between Rupees and Dollars. This is the result of his intervention that the decline in the rupee is getting very slow.

What possibilities are next?

Sachin says that Turkey has become a risk market. Because of this, the short term investors have panicked. Whose direct effect impacted the rupee against the dollar. He said that if the Turkish economy does not recover soon, then the rupee may continue to decline further. However, the rate of decline in the rupee will be slow.

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