Rupee hits 71-mark for first time ever, drops 26 paise against US dollar
Mumbai, Aug 31, 2018 (BSS/PTI) – The rupee slumped to a fresh record low
of 71 against the dollar for the first time ever by falling 26 paise on
persistent demand for the US currency amid rising crude prices.
At the Interbank Foreign Exchange (Forex) market, the local currency opened
lower at 70.95 a dollar and slipped further to hit its lifetime low of 71
from its previous close of 70.74.
Forex dealers said besides robust month-end demand for the American
currency from oil importers, dollar’s strength against its rival currencies
on expectations of rising interest rates amid lingering Sino-US trade
tensions, weighed on the domestic currency.
Yesterday, the rupee slid further by 15 paise to close at a fresh lifetime
low of 70.74 to the dollar due to strong demand for the greenback from oil
importers and surging crude oil prices stoking inflation fears.
Growing fears about rising inflation in amid high global crude oil prices
and consistent outflow of foreign funds from the domestic equity market also
weighed on the domestic currency.
Benchmark Brent crude oil was at USD 78 a barrel in early Asian trade.
Meanwhile, the BSE Sensex fell 78.64 points, or 0.20 per cent, to 38,611.46
points in opening trade.