Rupee sinks to lifetime low against US dollar, breaches 69-mark

28 June 2018, 12:53 PM
Rupee sinks to record low vs US dollar, breaches 69-mark
Rupee sinks to record low vs US dollar, breaches 69-mark

The Indian rupee on Thursday collapsed to a lifetime against the US dollar as resurgent crude oil prices deepened concerns about the world's third-biggest oil consumer's current account deficit and inflation dynamics.

The rupee collapsed to a record low of 69.10 against the US dollar by plunging 49 paise or 0.7 per cent in early trade on Thursday. This is the lowest ever value of the rupee against the US currency. It went past its previous record of 68.86 in November 2016.

Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.

The rupee opened at 68.87 a dollar against 68.61 previously at the interbank foreign exchange market and plunged to 69.10 in morning trades.

Global crude oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November. Concerns over supply disruptions in Libya and Canada also pushed prices higher.

Forex dealers believe that the higher crude oil prices and a declining rupee are a double blow for the Indian economy, which was already strained due to the demonetisation and GST rollout.

Meanwhile, the benchmark Sensex was down by 90.26 points, or 0.25 per cent, at 35,126.85 in early trade on Thursday.

(With inputs from PTI)

First Published: Thursday, June 28, 2018 10:02 AM
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