Rupee slips 12ps to 92.40/$

Mumbai: The rupee declined 12paise to settle at an all-time low of 92.40 against the US dollar, pressured by rising crude oil prices and sustained outflow of foreign funds amid the West Asia crisis.

A positive trend in domestic equity markets also helped the domestic currency at the lower level, even as investors remained watchful of the US Federal Reserve’s interest rate decision, forex traders said. At the interbank foreign exchange, the local unit opened at 92.35 and hit the lowest intra-day level of 92.47 against the greenback.

The unit finally ended at a new lifetime low of 92.40, registering a loss of 12paise from the previous closing level. Despite a marginal gain of 2paise on Monday, the local unit ended the session at a near record low of 92.28 against the dollar.

The rupee, Asia’s worst-performing currency, touched its lowest intra-day level of 92.47 for the first time on March 13, when it ended the session at 92.30 against the dollar. Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said the rupee declined due to a surge in crude oil prices and continued FII outflows.

However, a recovery in domestic markets and softening of the US dollar prevented a sharp fall in the rupee. He said that any hopes of reopening the Strait of Hormuz and intervention by the RBI may support the rupee at lower levels.

“Investors will also watch out for the FOMC, ECB, Bank of Japan and Bank of England’s monetary policy this week.