Continuing its downward slide against the US dollar, the rupee fell by 23 paise to lifetime low at 70.68 per US dollar on Thursday. Indian currency at the Interbank Foreign Exchange market opened a bit higher at 70.57 a dollar from its previous close of 70.59 but then fell to hit a fresh low of 70.82, reported Press Trust of India (PTI).
As per reports, buying by importers, mainly oil refiners, keeping in mind the surging crude oil prices and capital outflow affected the local currency.
US dollar has strengthed against its rival currencies overseas as well but rupee was bearing the brunt, as per a NDTV report.
The free fall of rupee has continued all week, on Wednesday the rupee plunged by 49 paise against the dollar to close at 70.59. This marked the steepest fall in the rupee against the greenback in about two weeks.
Meanwhile, the domestic stock market also dipped following the rupee’s plunge. The S&P BSE Sensex dropped 32.55 points to trade at 38,690.38 and Nifty50 fell 11.30 points to trade at 11,680.60.
Asian stocks dipped on while the Chinese markets showed stability after some easing in business tensions in North America and Europe. The Chinese have locked horns with the US in a trade war, following President Trump’s slapping of tariffs on Aluminium and Steel.
However, oil prices inched today, extending solid gains from the previous session on a fall in U.S. crude inventories and expected disruptions to supply from Iran and Venezuela, as per NDTV