The Indian rupee continues to fall crossing the 71 mark against the US dollar for the first time. The Indian currency has now lost nearly 10 per cent since January making it Asia’s worst performing currency. The rupee has been falling due to rising crude oil prices in the international market and month-end dollar demand from importers. On Thursday, the Indian currency closed at 70.74 against the US dollar.
Rising crude oil prices have been a cause of concern as it results in widening of current account deficit (CAD). Current account deficit is the difference between imports and exports of the country. India imports 80 per cent of its crude oil demand which adversely affects the currency exchange rate.
Meanwhile, US President Donald Trump has been preparing to fuel trade war with Beijing and is ready to levy more tariffs on Chinese imports.
The BSE benchmark index Sensex fell 78.64 points, or 0.20 per cent, to 38,611.46 points in opening trade.
Sensex and Nifty closed down 0.08 per cent at 38,690.10 and 0.13 per cent lower at 11,676, respectively. The gains in consumer and healthcare segments on Thursday were offset by losses in financial stocks as it was an expiry day for derivatives contracts.