Rupee slips to 69.43 against US dollar amid sustained foreign fund outflows and trade worries

Mumbai: The rupee Tuesday slipped further by 3 paise to close at 69.43 against the US currency due to fag-end dollar demand from banks and importers amid sustained foreign fund outflows. Losses in the domestic equity market and a strengthening dollar against major currencies overseas amid trade worries also weighed on the local unit, forex traders said. Investor sentiment took a beating after IMF chief Christine Lagarde said US-China trade tensions were a ’threat’ to the world economy. Crude oil prices also dropped further on growth concerns. Brent crude futures declined 1.19 percent to trade at $70.39 per barrel. The rupee opened flat at 69.40 and later rose to the day’s high of 69.29 at the interbank forex market. However, it failed to maintain gains and touched intra-day low of 69.46 against the US dollar. It finally settled at 69.43, down 3 paise from the previous close. The rupee had settled 18 paise lower at 69.40 against the US dollar Monday. [caption id=“attachment_6013191” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] “Rupee is consolidating in narrow range,” VK Sharma, Head PCG & Capital Markets Strategy, HDFC Securities commented. The rupee came under pressure following a massive selloff in the domestic equity markets. The BSE Sensex ended 323.71 points, or 0.84 percent, lower at 38,276.63. The index hit an intra-day low of 38,236.18 and a high of 8,835.54. Similarly, the NSE Nifty dropped 100.35 points to settle below the 11,500 level at 11,497.90. During the day, the bourse hit a low of 11,484.45 and a high of 11,657.05. Foreign investors were net sellers in capital markets Monday pulling out assets worth Rs 948 crore on a net basis, provisional exchange data showed. Meanwhile, the Dollar Index which gauges the greenback’s strength against a basket of six currencies, rose 0.04 percent to 97.55. Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.3095 and for rupee/euro at 77.7010. The reference rate for rupee/British pound was fixed at 90.9706 and for rupee/100 Japanese yen at 62.59.