The rupee today collapsed to a lifetime low of 70.52 by plunging 42 paise against the dollar on strong month-end demand for the American currency amid foreign fund outflows. Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure.
At the interbank foreign exchange market, the rupee opened lower at 70.32 a dollar against 70.10 previously and dropped further to a new low of 70.52 in late morning deals, down by 42 paise.
Moreover, dollar’s strength against some currencies overseas also put pressure on the rupee. A sharp surge in trade deficit too impacted the rupee. Trade deficit soared to a near five-year high of USD 18 billion.
Meanwhile, the local currency had bounced back yesterday in a tepid fashion from the record closing low, gaining 6 paise to end at 70.10 against the US currency.