Rupee touches 70 ahead of 72nd Independence Day

The rupee hit an all-time record low on Tuesday crossing the psychological mark of 70 per dollar before bouncing back to end slightly higher at 69.89.

The currency has lost about 8.6% so far this year as the dollar has been climbing. Other currencies such as the Turkish lira, Argentine peso, South African rand, Brazilian real and Russian rouble have fared much worse.

According to the 36-currency RBI Real Effective Exchange Rate (REER), the rupee is overvalued 15%. The six currency REER gauge shows a 23% overvaluation for the local unit.