Rupee crashes to 72.48 on strong dollar demand from importers; surging crude prices, capital inflows weigh on currency

Mumbai: The rupee on Monday slumped to a fresh record low of 72.48 by falling 75 paise against the US dollar in late morning deals on rising crude oil prices, strengthening dollar and a widened current account deficit. Earlier the rupee resumed slightly lower at 72.18 against last Friday’s closing level of 71.73 a dollar at the Interbank Foreign Exchange here. [caption id=“attachment_4619341” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] The domestic unit witnessed intense volatility and traded between 72.07 and hit an all-time low of 72.48 during morning deals. India’s current account deficit (CAD) widened to $15.8 billion in April-June in value terms this year as against $15 billion in the same quarter of 2017-18, mainly due to a higher trade deficit, according to Reserve Bank of India (RBI) data released Friday. Domestic macro situation and dollar’s strength amid fear of currency crisis continued to spook the rupee, a dealer said. Overseas, the US dollar edged higher against a basket of currencies in early Asian trade on strong US August jobs data and fears of an escalation in the China-US trade conflict.