Rupee Hits Record All-Time Low of 70.32, Slips 43 Paise Against Dollar

The Indian rupee opened at a record low of 70.25 a dollar, down from its previous close of 69.89, and weakened further to trade at a fresh low of 70.32, down by 43 paise.

The rupee continues to slide down as it touches the fresh record low of 70.32 against the US dollar, after slipping 43 paise against the dollar to trade at a lifetime low on strong demand for the US currency.

The Indian rupee opened at a record low of 70.25 a dollar, down from its previous close of 69.89, and weakened further to trade at a fresh low of 70.32, down by 43 paise.

Forex dealers said besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency.

A sharp surge in trade deficit too impacted the rupee. Trade deficit soared to a near five-year high of USD 18 billion, data released by the commerce ministry on Tuesday showed.

Furthermore, depreciation of the Turkish lira against the dollar after the US imposed tariffs on steel and aluminium imports also put pressure on the Indian rupee, they added.

The rupee had gained 4 paise, to close at 69.89 against, the dollar in the previous session on Tuesday.

Forex market was shut yesterday on account of Independence Day.

Meanwhile, the BSE Sensex fell by 207.03 points, or 0.54 per cent, to 37,644.97 points in early trade.

Foreign institutional investors (FIIs) sold shares worth a net of Rs 378.84 crore on Tuesday, as per provisional data.

The US dollar last week gained strength as experts fear that the economic crisis in Turkey could soon spill over its impact on global economies. Lira, the currency of Turkey, has fallen by more by more than 50 per cent over the period of last 12 months.

(with PTI Inputs)