Rupee falls 8ps to fresh low of 88.18/$

Mumbai: The rupee declined 8 paise to close at an all-time low of 88.18 against the US dollar, as Indo-US trade deal uncertainty and weak domestic equity markets pressurised the local unit. Forex traders said the rupee is trading near all-time low levels as risks remained skewed to the downside amid uncertainty over US trade tariffs. Moreover, persistent foreign fund outflows or dollar strength could drive further weakness, they added.

On Monday, the rupee revisited its all-time intra-day low of 88.33 against the American currency. At the interbank foreign exchange market, the rupee opened weak at 88.14 against the US dollar, then lost further ground to an intraday low of 88.20. The rupee finally settled for the day at 88.18 against the US dollar, down 8paise from its previous close.

On Monday, the rupee closed at a record low of 88.10 against the US dollar. “We expect the rupee to trade with a slight negative bias as uncertainty over trade tariffs and weak domestic markets may pressurise the local unit. FII outflows and a positive tone in crude oil prices may further weigh on the domestic currency,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.