Rupee ends weak at 72.45

The rupee ended weak at 72.45 due to rising crude oil prices, strengthening of dollar against other currencies overseas on upbeat jobs data and widening of current account deficit.

After opening at a record low of 72.15 a dollar from its previous close of 71.73, it hovered in a range of 72.67 and 72.08 in the evening trade before ending at 72.45, down 72 paise at 5 pm local time.

The rupee recovered slightly from intraday low of 72.67 on RBI intervention. Meanwhile, the Sensex ended lower by 467.65 points or 1.22 per cent at 37,922.17 owing to negative global cues, weakening of rupee to a fresh record low of 72.35 and widening of current account deficit to $15.8 billion in April-June this year.

Forex dealers said besides strong demand for the American currency, dollar buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency.

Also, the dollar’s strength against its rival currencies overseas amid fears of a possible escalation in the US-China trade conflict too put pressure on the rupee, they said.

India’s current account deficit widened to $15.8 billion in April-June in value terms this year against $15 billion in the same quarter of 2017-18, mainly due to higher trade deficit, according to RBI data released on Friday.

Oil prices rose as US drilling for new production stalled and as the market eyed tighter conditions once Washington's sanctions against Iran's crude exports kick in from November.

WTI crude futures were at $68.19 per barrel at 0344 GMT, up 44 cents, or 0.65 per cent, from their last settlement. Brent crude futures climbed 50 cents, or 0.65 per cent, to $77.33 a barrel.

On Friday, the rupee had closed higher by 26 paise at 71.73 on heavy intervention by the Reserve Bank of India.

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