Rupee hits 71-mark for the first time

The rupee continued its downslide to fall to yet another low today, hitting 71 against the US dollar for the first time ever. After shedding 15 paise to end at 70.74 against the US dollar yesterday, the rupee slid further to open at 70.95 per dollar today and hit the 71-mark in intra-day trade.

The domestic unit is set for its biggest monthly fall in three years, according to Bloomberg. At 10.33 am, the rupee was trading 21 paise, or 0.30% lower at 70.95 against the US dollar.

At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74.

Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar’s strength against its rival currencies on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency.

Growing fears about rising inflation in amid high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also weighed on the domestic currency.

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