Rupee Falls To New Low Of Rs 83.95 Against US Dollar

Indian rupee on Tuesday hit new low as global funds continued to pull out of domestic stocks amid the unending unwinding of the yen carry trade and soaring worries of recession in the US. Rupee declined 11 paise on Tuesday to a record low of 83.95 against the US dollar.

Earlier, rupee opened 25 paise higher at 83.84 against the U.S. dollar in morning trade on August 6, mirroring the rebound in the domestic equity market, even as aggressive dollar bids from foreign banks exerted pressure on the local unit, as per the PTI report.

Forex traders claimed risk aversion in the world markets, rising geopolitical tensions in the Middle East and outflows by foreign investors further hurt investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.92 and then touched an early high of 83.84, registering a 25 paise gain from its all-time closing low of 84.09 against the American currency. On Monday, the rupee slumped 37 paise to settle at an all-time low of 84.09 against the U.S. dollar, added the PTI report.

"The rupee is being sold off in good times and bad times indicating the demand for US dollar as foreign portfolio investors exit the Indian equity market on high valuation concerns," said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Rupee weakness occurred amid rising demand for the greenback from oil importers on soaring Brent crude oil price. Brent crude surged 1.09% to $77.13 due to 0.14% surge in the dollar index. Oil prices witnessed rally amid worries of a spreading West-Asia conflict that could dent supplies.