The Indian rupee. Photo: AFP
The Comptroller General of Accounts' data for April 2020 show that the federal government's share of tax collection during April was 167 billion rupees (US$2.21 billion) compared with 553 billion rupees in the previous year. Photo: AFP

The Indian rupee, which has been facing headwinds caused by a rise in crude oil prices and a hardening US dollar, continued its slide against the US currency on Monday.

The Indian rupee slipped to a record low as it fell 66 paise in early trade on Monday. It had opened at 69.47 to the US dollar on Monday against 68.83 on Friday, reported It declined further to 69.61 and later recovered.

As for Monday’s fall, market analyst also attribute it to the potential market contagion caused by turmoil in the Turkish lira, which has been in free fall for the last few days. Investors preferred safe-havens such as the US dollar and the Japanese yen after a plunge in the Turkish lira pulled down all emerging market currencies.

The rupee has been among the worst performing currencies against the dollar compared with its peers so far this year. It had breached the 69-mark against the US dollar amid global uncertainties and concerns over inflation.

Kaushik Basu, the former chief economist of the World Bank, recently said the fair value of Indian rupee was between 70 and 71 to the dollar and expected the Indian currency to fall further.

India is the world’s third largest oil importer and the hike in global oil prices has inflated its import bill.