The Indian rupee has on Tuesday breached the 70 mark against the US dollar. What makes this slide unique is that this is the first time that this has happened. This has come on the back of the rupee's weakest ever loss of Rs. 1.09 against the US dollar on Monday.

The slide comes in the context of a currency crisis in Turkey. What is happening in Turkey? At a time when its inflation is a whopping 15 percent or so and the debt scenario is bleeding, the US recently imposed higher tariffs on Turkish products like steel and aluminum, making the economy vulnerable. This has further precipitated the freefall of the Lira (Turkish currency).

"Post Turkey, contagion risks for Emerging Market economies have gone up. RBI Guv has said we are at the beginning of a currency war. China's real economy and currency movement most critical indicators to be watched," senior journalist MK Venu commented.