Rupee falls 52 paise against US dollar: The rupee on Monday opened at 72.08 against the US dollar in early trade, reports said. The rupee declined by 58 paise from the previous close to as much as 72.24 in the afternoon deals, the lowest intraday level recorded so far in 2019. With the new low, the domestic currency has become the worst-performing Asian currency and lost more than 5 per cent against the dollar in august only. The declining value of Chinese Yuan has also exerted pressure on the rupee.
Analysts have confirmed that the Chinese yuan fell to 7.1487 against the greenback, hitting an 11-year low on Monday. The only support for the rupee came from the international oil prices, which kept declining. The analysts have claimed that the domestic unit came under pressure following an escalation in the US-China trade war along with the demand of dollar from banks and importers.
— ANI (@ANI) August 26, 2019
— Congress (@INCIndia) August 23, 2019
In the first half of the session, the rupee was seen sea-sawing between the range of 71.91-72.24 against the US currency. It was last seen trading 35 paise against the greenback. Earlier on Friday, the rupee closed at 71.66 against the US dollar.
On the same day, US President Donald Trump announced an additional duty on some $550 billion of targeted Chinese goods. In the response, China declared tariffs on $75 billion worth of US goods. It was the sole reason that crude oil prices fell following the worries that the trade war between the two countries would affect the world demand. Meanwhile, the Interbank Foreign Exchange has predicted that the domestic currency would recover soon.