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The rupee touched an all-time low of 95.80 against the US dollar on Wednesday (May 13), extending its losing streak, as overseas debt repayments and importer hedging demand outweighed the limited support from higher duties on precious metal imports.
In early trade, the domestic currency had strengthened 16 paise from its previous close against the American currency, supported by hopes that higher tariffs on precious metal imports would curb dollar outflows.
The government recently raised import duties on gold and silver to 15% from 6% to discourage overseas purchases and help ease pressure on foreign exchange reserves.
However, the rupee later reversed gains and slipped to a record low of 95.80, as elevated crude oil prices and a firm US dollar weighed on sentiment.
Forex traders said the near-term outlook for the rupee remains sensitive to global oil trends and dollar strength, even as measures to curb gold imports may offer some support to the currency.
On Tuesday (May 12), the rupee had declined 40 paise to close at an all-time low of 95.68 against the US dollar.
In global markets, the dollar index remained firm at around 98.30, while Brent crude traded lower by over 1% at about $106 per barrel.
Foreign institutional investors continued to remain net sellers, offloading equities worth ₹1,959.39 crore on Tuesday (May 12), exchange data showed.
-Wit PTI inputs
In early trade, the domestic currency had strengthened 16 paise from its previous close against the American currency, supported by hopes that higher tariffs on precious metal imports would curb dollar outflows.
The government recently raised import duties on gold and silver to 15% from 6% to discourage overseas purchases and help ease pressure on foreign exchange reserves.
However, the rupee later reversed gains and slipped to a record low of 95.80, as elevated crude oil prices and a firm US dollar weighed on sentiment.
Forex traders said the near-term outlook for the rupee remains sensitive to global oil trends and dollar strength, even as measures to curb gold imports may offer some support to the currency.
On Tuesday (May 12), the rupee had declined 40 paise to close at an all-time low of 95.68 against the US dollar.
In global markets, the dollar index remained firm at around 98.30, while Brent crude traded lower by over 1% at about $106 per barrel.
Foreign institutional investors continued to remain net sellers, offloading equities worth ₹1,959.39 crore on Tuesday (May 12), exchange data showed.
-Wit PTI inputs
