The Indian rupee has fallen to a new lifetime low of 71.10, shedding 10 paise against the US dollar in late afternoon trade on Monday, tracking weakening trend in emerging market currencies.
Rupee downfall in the forex market is impacted by several factors including a surge in global oil prices, concerns over the US -China trade war and contagion risks from Turkey and Argentina. Benchmark Brent crude oil was trading at $78.05 a barrel. The rupee’s previous record low was 71, marked on August 31, 2018.
According to forex dealers, besides strong demand for the American currency from importers, capital outflows too weighed on the domestic currency today.
Domestic stock markets turned negative minutes after opening on positive note on Tuesday. At 9:40 am, the S&P BSE Sensex dropped 115.48 points or 0.30 per cent to trade at 38,197.04. The broader Nifty50 fell 45.15 points or 0.39 per cent to trade at 11,537.20.
Asian shares fell in early trade on Tuesday, amid growing concerns over escalating international trade disputes and as emergency austerity measures in Argentina highlighted turbulence in emerging markets.