Rupee falls 7ps to all-time low of 88.79/$

Mumbai: Rupee consolidated in a narrow range and settled for the day lower by 7paise at its all-time closing low of 88.79 against US dollar on Monday, on persistent foreign capital outflows and rise in risk-off sentiments.

Forex traders said rupee is hovering near its all-time low level as investors remained concerned over global trade uncertainties and impact of US visa fee hike on India’s IT services exports.

Moreover, the Reserve Bank of India (RBI) policy meeting outcome on October 1, is expected to influence rupee and government bond movements.

At the interbank foreign exchange, the rupee opened at 88.69 against the US dollar, and finally settled for the day with a loss of 7paise at 88.79, its lowest-ever closing level so far. On Friday, the rupee rebounded from its all-time low to close 4paise higher at 88.72 against the US dollar.

The rupee fell to a fresh lifetime low of 88.76 against the American currency on Thursday. “We expect the rupee to remain weak on weak domestic markets and elevated crude oil prices.

Month-end dollar demand from importers may also pressurise the rupee. However, weakness in the US dollar and any intervention by the RBI may support rupee at lower levels,” said Anuj Choudhary, Research Analyst Currency and commodities Mirae Asset ShareKhan.

Choudhary further added that traders may take cues from core pending home sales data from the US and President Donald Trump’s speech.