Indian Rupee Tumbles To 72.91 Against US Dollar
New Delhi: The rupee tumbled to a lifetime low of 72.91 against the dollar at the interbank foreign exchange market on Wednesday. The domestic currency devalued by 22 paise to hit fresh record low of 72.91 against the Dollar in morning trade, amid increasing global oil prices and excessive foreign fund outflows.
According to dealers, escalating trade war concerns, surge in dollar demand from banks and importers and higher crude oil prices weighed down the domestic currency heavily. On Tuesday, the rupee had touched 72.74 against Dollar before finally settling at 72.69, showing a loss of 24 paise or 0.33 per cent.
The dollar strengthened against numerous currencies overseas as the US economy continued to exhibit power amid a threat of escalating US-China trade conflict. The Indian Rupee has been impacted by multiple factors – both economic as well as global trade related.
On the global front, some of the key factors which have led to strengthening of the US dollar are the sanctions against Iran on oil and China on trade. This is adversely impacting the Indian economy as India is a heavy importer of oil. India’s current account and trade deficit as well as the fiscal deficit have also played a significant role in the depreciation of rupee.
Meanwhile, benchmark Sensex surged up by 133.29 points or 0.35 per cent to stand at 37,546.42 in the opening deals.