Forex

Rupee slumps 54 paise to 69.60 vs dollar

PTI Mumbai | Updated on August 02, 2019 Published on August 02, 2019

The rupee dived 54 paise on Friday to close at an over six-week low of 69.60 against the US dollar as soaring crude oil prices and a fresh flare up in US-China trade tensions weighed on emerging market currencies.

 Global markets tumbled and safe-haven assets like the Japanese yen gained after President Donald Trump on Thursday announced that the US will impose an additional 10 per cent tariff on $ 300 billion worth Chinese imports, which Beijing vowed to retaliate.

 In a series of tweets, Trump said the new tariff, in addition to the 25 per cent on goods worth $ 250 billion that was previously in place, would come into effect from September 1.  Persistent foreign fund outflows and a strengthening greenback also put pressure on the domestic currency, forex traders said.

 At the interbank foreign exchange (forex) market, the rupee opened at 69.26 a dollar, then lost further ground and touched a low of 69.67 during the session.  The local unit finally settled at 69.60 a dollar, down 54 paise over its previous close. This is its weakest level since June 19 when it had settled at 69.68 against the American currency.

 This is the second straight session of loss for the rupee, during which it has lost a hefty 81 paise.  On a weekly basis, the rupee has declined 71 paise.

Published on August 02, 2019
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