Rupee hits record low of 70.83, falls 24 paise against US dollar

Mangalore Today News Network

Aug 30, 2018: The rupee on Thursday extended losses for the fourth consecutive session and plunged to an all-time intra day low against the US dollar on strong month-end dollar demand from oil importers and foreign fund outflows. The currency fell 24 paise to hit a new record low of 70.83 per dollar.

Yesterday, the rupee fell to an all-time low of 70.65 per dollar intraday. It fell by 49 paise or 0.70 percent to close at a historic low of 70.59 against the US currency. Investors hit the panic button after reports highlighted risks of India breaching the 3.3 per cent fiscal deficit target for 2018/19.

Traders also reported hedging-related offtake as importers rushed to pay forward premium.

The 49 paise slide was the biggest single-day crash since August 13 when the unit crumbled 110 paise or 1.6 per cent. The rupee previously had closed at a record low of 70.16 to the dollar on Monday.

The slide was triggered by factors such as crude prices hitting multi-month highs fuelled by supply shocks along with concerns over widening current account deficit (CAD).

"Focus will now shift to India’s GDP and fiscal deficit data due to be released on Friday. A near-term range for the rupee is 70.20 and 70.75," Rushabh Maru, Research Analyst, Anand Rathi Shares and Stock Brokers.

The rupee has fallen by over 10 per cent this year so far - making it the worst-performing currency in Asia.

(With agency inputs)