In January, a dollar bought 3.7 units of the Turkish currency, meaning it has lost around 44 per cent of its value against the dollar this year. There is "nothing at this stage to worry".
However, the rupee erased all morning gains to hit an all-time low of over 70 a dollar. It, however, recovered from the all-time low.
Turkey's lira remained under pressure in Asian trade today but markets in the region enjoyed a little more stability after the previous day's turmoil.
Sensex gained 207.10 points to close at 37,852 while NSE's Nifty closed at 11,435.10, up by 79.35 points.
"The Indian rupee just gave the Supreme Leader a vote of no confidence, crashing to a historic low", Rahul Gandhi, president of the main opposition Congress party, said in a tweet referring to his rival Modi.
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"There is no point spending a lot of dollars in defending a rupee when the force of the fall is so strong across emerging markets", said a senior forex dealer at an Indian state-run bank.
"Given the uncertainty surrounding Turkey crisis and strength in the dollar index, importers are buying dollars aggressively".
Reuters reports that Indonesia's central bank intervened yesterday to protect the currency, and is scheduled to make an interest rate announcement tomorrow.
Investors preferred safe-havens such as the USA dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.