Bombay:
The rupee fell 41 paise, closing at a new low of 79.36 (for now) against the US dollar on Tuesday amid a strong overseas dollar and continued outflows of foreign funds.
In the interbank forex market, the local unit opened at 79.04 against the dollar and witnessed an intra-day high of 79.02 and a low of 79.38.
It eventually finished at 79.36 (provisional), 41 paise lower than at the previous close. On Monday, the rupee closed at 78.95 against the US dollar.
Bloomberg news agency quoted the rupee as being Rs 79.37.
The Indian rupee hit a new all-time low against the US dollar on Tuesday on the back of a stronger dollar and weaker-than-expected domestic data, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
Exports of goods from India rose 16.78 percent year-on-year to $37.94 billion in June, while the trade deficit rose to a record $25.63 billion due to a surge in gold and crude oil imports , according to preliminary government data released on Monday. †
“The rupee is expected to trade negatively due to a firm tone in the US dollar, elevated oil prices and weak global market sentiment,” Choudhary said.
The dollar may strengthen on expectations of aggressive rate hikes by the Federal Reserve, Choudhary said, adding that the increase in tariffs on gold could support the rupee to some extent as it could dent import demand for gold. Rupee can trade between 78.50-80 in the next few sessions.
The dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.89 percent to 106.07.
Futures on Brent oil, the global oil benchmark, fell 1.10 percent to $112.25 a barrel.
In the domestic stock market, the BSE Sensex was down 100.42 points, or 0.19 percent, at 53,134.35, while the broader NSE Nifty fell 24.50 points, or 0.15 percent, to 15,810.85.
Foreign institutional investors remained net sellers in the capital market on Monday as they sold shares worth Rs 2,149.56 crore, according to exchange data.