Rupee slumps 9ps to all-time low of 90.41/$
The local unit is expected to trade with a negative bias as the delay in the trade deal between India and the US may weigh
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Mumbai: The rupee depreciated by 9 paise to close at an all-time low of 90.41 against the US dollar on Friday, as uncertainty over the India-US trade deal and persistent foreign fund outflows dented investor sentiment. Forex traders said the rupee is under pressure, largely due to aggressive dollar purchases by importers amid surging global precious metal prices. At the interbank foreign exchange, the rupee opened at 90.43 against the US dollar, then fell further to a record intraday low of 90.56 against the greenback, registering a fall of 24paise from its previous close. The unit settled the day at 90.41 against the US dollar, down 9paise over its last close. On Thursday, the rupee had plunged 38paise to close at an all-time low of 90.32 against the US dollar. The rupee is expected to trade with a negative bias as the delay in the trade deal between India and the US may weigh on the domestic unit. India and the US on Thursday concluded two days of talks, during which both sides exchanged views on trade-related issues, including the ongoing negotiations for a mutually beneficial bilateral trade agreement. Prime Minister Narendra Modi and US President Donald Trump on Thursday discussed ways to sustain momentum in the bilateral economic partnership in a phone conversation amid signs of the two sides inching closer to firming up a much-awaited trade deal. “We expect the rupee to trade with a negative bias amid uncertainty over the Indo-US trade deal. However, improved global sentiments and falling crude oil prices may support the rupee. A weak dollar and any intervention by the central bank may also support the rupee at lower levels,” said Anuj Choudhary, Research Analyst, MiraeAsset ShareKhan.
