Rupee Slips To Record Low Amid Strong Dollar Demand, Soaring Crude Oil Prices

The Indian rupee slipped to a record low on June 20 amid pressure by likely outflows and robust dollar demand from local importers.

The rupee slipped to a lifetime low of 83.62 against the U.S. dollar in the latter half of Thursday's trading session and was last quoted at 83.5975. The local currency had closed at 83.4550 in the previous session, according to an Economic Times report.

Earlier in morning trade today, rupee declined by 4 paise to 83.48 against the US Dollar due to strong American currency and an upward trend in crude oil prices overseas.

According to a PTI report, rupee resisted the fall amid the unabated inflow of foreign capital but gave in to the pressure due to a muted trend in the domestic equity markets, forex traders said

At the interbank foreign exchange market, the local unit opened at 83.43 and lost further to 83.48 against the greenback, registering a fall of 4 paise from its previous close, added the PTI report.

On Wednesday, the rupee settled 1 paisa lower at 83.44 against the US dollar. "The local currency's upward momentum was halted by a strong US dollar and rising crude oil prices in the international market," said Anand James, Chief Market Strategist, Geojit Financial Services.

Other factors that contributed to the decline in the rupee include the latest Houthi attack. A bulk carrier sank days after an attack by Yemen's Houthi rebels believed to have killed one mariner on board, authorities said early Wednesday, the second ship sunk in the rebels' campaign. The sinking of the Tutor in the Red Sea marks what appears to be a new escalation by the Iranian-backed Houthis in their campaign targeting shipping through the vital maritime corridor over the Israel-Hamas war in the Gaza Strip, as per the AP report.