Rupee hits record low of 70.08 a dollar, Turkey rout complicates RBI's job

A weaker currency complicates the central bank's job of keeping prices in check as it makes imports costlier

There's not a moment of respite for India's inflation-targeting central bank. 

Just when gains in consumer prices eased, the Turkish lira-led sell-off in emerging-market currencies has renewed an onslaught on the rupee, pushing it to a record low and possibly demanding more rate action from the Reserve Bank of India.

The rupee dropped to as low as 70.08 per dollar on Tuesday, keeping intact its position as Asia's worst-performing currency this year. The currency reversed losses to close 0.1 per cent higher at 69.8963 in Mumbai, with traders saying state-run banks sold dollars, probably on behalf of the RBI. 

"Deteriorating emerging-market sentiment has