Rupee weakens further; hits fresh record low of 70.82, drops 23 paise against dollar on strong month-end demand for US currency

Mumbai: Continuing its free-fall, the rupee today weakened by another 23 paise against the dollar to trade at a lifetime low of 70.82 on strong month-end demand for the US currency amid sustained foreign fund outflows.

At the Interbank Foreign Exchange (Forex) market, the local currency opened a tad higher at 70.57 a dollar from its previous close of 70.59 but slipped to hit a fresh low of 70.82, down by 23 paise.

Forex dealers said besides strong month-end demand for the American currency, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency.

Furthermore, the dollar strength against its rival currencies overseas too put pressure on the rupee, they said.

The rupee had recorded a steep fall of 49 paise, to close at record low of 70.59 against the dollar in the previous session.

The rupee on Wednesday plunged to all-time low of 70.65 to the US dollar in day trade on heavy month-end dollar demand from importers and foreign capital outflows.

Representational image. Reuters.

Representational image. Reuters.

The local currency dropped by 49 paise or 0.70 percent to close at 70.59 to the dollar at the interbank foreign exchange market, logging its biggest single-day drop since 13 August when it nosedived 110 paise or 1.6 percent.

The rupee had earlier hit its all-time closing low of 70.16 on Monday.

Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure, dealers said.

"Focus will now shift to India's GDP and fiscal deficit data due to be released on Friday. The near-term range for the rupee is 70.20 and 70.75," Rushabh Maru, Research Analyst, Anand Rathi Shares and Stock Brokers said.

A sharp surge in trade deficit too impacted the rupee. Trade deficit soared to a near five-year high of $18 billion.

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Updated Date: Aug 30, 2018 10:08:17 IST

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