Rupee continues to fall, hits new-low of 70.32 against USD
The Rupee today slumped 43 paise against the US Dollar to trade at a lifetime low of 70.32 on strong demand for the US currency. At the Interbank Foreign Exchange, the local currency opened at a record low of 70.25 a dollar, down from its previous close of 69.89, and weakened further to trade at a fresh low of 70.32, down by 43 paise.
Trade deficit soared to five-year high of $18 billion
Forex dealers said besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency. A sharp surge in trade deficit too impacted the Rupee. Trade deficit soared to a nearly five-year high of $18 billion, data released by the Commerce Ministry on Tuesday showed. The Rupee had gained 4 paise, to close at 69.89 against Dollar on Tuesday.
Depreciation of Turkish lira also put pressure on rupee
Furthermore, depreciation of the Turkish lira against the Dollar after the US imposed tariffs on steel and aluminum imports also put pressure on the Indian Rupee. Forex market was shut yesterday on account of Independence Day. Meanwhile, the BSE Sensex fell by 207.03 points, or 0.54%, to 37,644.97 points in early trade. FIIs sold shares worth a net of Rs. 378.84cr on Tuesday.
