Rupee sinks to new low, inches closer to 73 against USD

Representational Image (Photo: Getty Images)


The Indian Rupee on Wednesday continued its downward trend and slumped to a new low of Rs 72.91 against United States dollar at the interbank foreign exchange market.

The rupee has been on a downslide owing to inflationary pressure and decline among its global peers against the dollar.

The domestic currency dropped 22 paise taking it to a new record low in morning trade amid surging crude oil prices and unabated foreign fund outflows.

Escalating trade war concerns, consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure, dealers said.

On Tuesday, after scaling a historic low of 72.74, the local unit, finally settled day at 72.69, showing a loss of 24 paise, or 0.33 per cent.

Brent crude gained 0.35 per cent to quote at USD 79.34 a barrel. It had surged over 2 per cent in Tuesday’s trade.

Sentiment was also hurt by sustained capital outflows, they added.

Meanwhile, the benchmark Sensex was up by 133.29 points, or 0.35 per cent, to 37,546.42 in the opening deals.

(With agency inputs)