Mumbai: The rupee depreciated 24 paise to a new record low of 90.56 against US dollar in early trade on Friday, as uncertainty over the India-US trade deal
and persistent foreign fund outflows dented investors’ sentiments.
Forex traders said rupee is under pressure largely due to aggressive dollar purchases from importers amid surging global prices for precious metals.
At the interbank foreign exchange, the rupee opened at 90.43 against the US dollar, then fell further to 90.56 against the greenback, registering a fall of 24 paise from its previous close.
On Thursday, the rupee had plunged 38 paise to close at an all-time low of 90.32 against the US dollar.
“For the day the range of 90 to 90.60 should be honored with a close watch on RBI. Today is also the last day of the talks between the Indian and visiting American delegation and we hope a deal is announced after that,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent higher at 98.37.
Brent crude, the global oil benchmark, was trading higher by 0.67 per cent at USD 61.69 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading higher by 170.40 points at 84,988.53, while the Nifty was up 98.40 points at 25,996.95.
Foreign Institutional Investors sold equities worth Rs 2,020.94 crore on Thursday, according to exchange data.
