NEW DELHI: The on Thursday failed to arrest its slide, hitting a new all-time low of 70.32, plunging further 43 paise against the in opening trade.
At the Interbank Foreign Exchange, the local currency 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.
In morning trade, investor sentiment was affected by a widening trade deficit on the domestic front and the broader macro of the rising US dollar. India‘s trade deficit widened to a more-than-five-year high of $18.02 billion in July, the trade ministry said on Tuesday, driven largely by a surge in oil imports.
Forex dealers said besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency.
On Tuesday, the currency had breached the psychological 70-mark for the first time, plunging to a low of 70.10 in intra-day trading, before closing at 69.90. Money markets across the world have been hit hard with investors wary of spread of the currency rout in .
Emerging markets like India, Russia, South Africa and China have been significantly affected, with investors looking towards the safe haven of dollar.
The Turkish lira eased to slightly below 6.0 against the dollar on Thursday after the United States ruled out removing steel tariffs on even if Ankara frees a US pastor and after Qatar pledged $15 billion in investment to Turkey. The move by Turkey‘s Gulf ally offered further support to a lira rally after the Turkish central bank tightened liquidity and curbed selling of the currency.
The Indian markets were closed on Wednesday, on account of Independence Day.
(With agency inputs) Get latest news & live updates on the go on your pc with . Download The for your device. in English and other languages.