Rupee Plunges 12ps To New Low Of 85.27/$

Mumbai: The rupee stayed weak for the third straight session and fell 12paise to settle at a fresh all-time low of 85.27 against the US dollar on Thursday, amid a strong greenback and rising crude oil prices. Forex traders said, increased month-end as well as year-end dollar demand from importers and fear of an aggressive import tariff by the Donald Trump administration lifted the American currency.

At the interbank foreign exchange, the rupee opened weak at 85.23 and touched the lowest-ever level of 85.28 against the greenback during intraday trade. The unit finally ended the session at its lifetime low closing level of 85.27 against the dollar, registering a loss of 12paise from its previous close. The rupee fell 4paise to settle at 85.15 against the US dollar on Tuesday, a day after losing 9paise on Monday.

The forex market was closed on Wednesday for Christmas. According to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, the rupee fell to a fresh all-time low on strong dollar and rising US treasury yields that are at the highest levels in seven months.

Also, he said the surge in crude oil prices, month-end/year-end dollar demand and FII outflows may also weigh on the rupee. “However, any intervention by the RBI may support the rupee at lower levels. Traders may take cues from weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of 85.10 to 85.45,” Choudhary added.