Indian Rupee slumps 16 paise to hit fresh low of 71.37 per dollar

At the Interbank Foreign Exchange, rupee opened at a record low of 71.24 against a dollar, down from its previous close of 71.21, and weakened further to trade at a fresh low of 71.37, down 16 paise. Around 9.55 am, the local currency was trading at 71.19 per dollar.

Rupee nosedived depreciated to a low of 71.10, shedding 10 paise against the US dollar in late afternoon trade yesterday. Image source: Rupee

Amid concerns of trade war escalation between United States and China, Indian rupee today slumped 16 paise to hit a new all-time low of 71.37 per dollar. The domestic currency opened at 71.24 per dollar surpassing the previous low of 71.21 per dollar, at which it had closed yesterday.

At the Interbank Foreign Exchange, rupee opened at a record low of 71.24 against a dollar, down from its previous close of 71.21, and weakened further to trade at a fresh low of 71.37, down 16 paise. Around 9.55 am, the local currency was trading at 71.19 per dollar.

According to analysts, along with trade concerns, high crude oil prices and consistent outflow of foreign funds also weighed on the Indian currency. "Indian rupee has made a new low of 71.37 in the spot market (around 9.15 a.m.). Weak domestic equity and bond markets as well as higher crude oil prices and a broad depreciation in the Asian currencies against the dollar pulled the rupee lower," Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities told IANS.

Forex dealers reportedly said that besides strong demand for the American currency from importers, capital outflows too weighed on the domestic currency. The US dollar strengthened against some currencies overseas as investors bid up safe haven assets amid tensions over global trade.

Notably, rupee nosedived depreciated to a low of 71.10, shedding 10 paise against the US dollar in late afternoon trade yesterday. A surge in global oil prices, concerns over US-China trade war and contagion risks from Turkey and Argentina are the factors impacting forex market sentiment.

Meanwhile, benchmark indices turned choppy after opening higher in early trade today on foreign fund outflows, surging global crude oil prices and weak rupee amid negative global cues.

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