Rupee hits fresh low of 72.91, falls 22 paise against US dollar

The rupee is the latest currency to be dragged down by fears that an escalating trade war could hurt global growth and severely affect Asian economies.

The rupee Wednesday collapsed to a lifetime low of 72.91 against the dollar at the interbank foreign exchange market.

Any policy response other than the RBI’s intervention, will depend upon the strength of the sell-off in key emerging markets and contagion risk, currency dealers said. (Reuters File Photo)

The domestic currency was quoting 22 paise lower at a fresh record low of 72.91 against the US dollar in morning trade amid surging crude oil prices and uanabated foreign fund outflows.

Escalating trade war concerns, consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure, dealers said.

Read: Intervene more aggressively to soften Rupee drop, government tells RBI

On Tuesday, after scaling a historic low of 72.74, the local unit, finally settled day at 72.69, showing a loss of 24 paise, or 0.33 per cent.

Brent crude gained 0.35 per cent to quote at USD 79.34 a barrel. It had surged over 2 per cent in Tuesday’s trade.

Sentiment was also hurt by sustained capital outflows, they added.

Meanwhile, the benchmark Sensex was up by 133.29 points, or 0.35 per cent, to 37,546.42 in the opening deals.