Rupee at record low: Currency falls to 96.70 against dollar after eighth straight session of losses

The rupee prolonged its shedding streak for an eighth consecutive session on Tuesday, tumbling 50 paise to shut at a record low of 96.70 against the US dollar amid elevated crude oil costs, persistent international fund outflows and a stronger dollar pushed by international threat aversion, PTI reported.The rupee, which has emerged as Asia’s worst-performing foreign money, has declined by Rs 2.48 or 2.64 per cent over the past eight buying and selling classes from its closing stage of 94.22 on Could 7.Foreign exchange merchants attributed the sharp depreciation within the home foreign money to rising crude costs and international supply-chain disruptions linked to the closure of the Strait of Hormuz.On the interbank international change market, the rupee opened at 96.38 against the US dollar and touched an intraday excessive of 96.27 in the course of the session.The foreign money ultimately settled at its historic closing low of 96.70 against the dollar, down 50 paise from Monday’s shut of 96.20.Anuj Choudhary, Analysis Analyst, Commodities Analysis, Mirae Asset Sharekhan, mentioned a stronger dollar and rising US treasury yields amid persevering with geopolitical tensions and international institutional investor outflows pressured the rupee.“Nonetheless, any intervention by the RBI and sure restrictions on the import of gold and silver might help the rupee at decrease ranges. USD-INR spot worth is anticipated to commerce in a variety of 96 to 96.60,” Choudhary mentioned, PTI quoted.In the meantime, the dollar index, which measures the dollar’s power against a basket of six currencies, was buying and selling 0.05 per cent increased at 99.24 amid persevering with Iran-related tensions.Brent crude, the worldwide oil benchmark, was buying and selling 1.92 per cent decrease at $109.95 per barrel in futures commerce.Merchants mentioned rising market economies, together with India, stay underneath strain from increased crude costs, as elevated oil charges speed up dollar outflows and intensify international portfolio investor withdrawals.In the meantime, US President Donald Trump mentioned he had halted recent strikes on Iran following requests from Qatar, Saudi Arabia and the UAE, whereas indicating that discussions with Tehran had been progressing.On the home fairness entrance, the Sensex declined 114.19 factors to shut at 75,200.85, whereas the Nifty fell 31.95 factors to settle at 23,618.Overseas Institutional Traders (FIIs) turned internet sellers after three classes of shopping for and offered equities value Rs 2,457.49 crore on Tuesday, in accordance to change knowledge.