Rupee closes at record low of 72.69 against dollar

The Indian rupee has depreciated 13 percent so far in 2018.

Rupee closes at record low of 72.69 against dollar

New Delhi: The rupee Tuesday crashed below the 72-mark to end at a life-low of 72.69 against the US dollar on growing fears of contagion from an emerging-market rout and escalation of global trade war.

Widespread concerns about the country's growing trade deficit as well as short-term debt liabilities and protectionist tendencies on the global front largely weighed on forex front. Besides, rising oil prices and the weakening currency have already impacted the sentiment, PTI said.

India's current account deficit (CAD) as a percentage of GDP declined marginally to 2.4 percent in the April-June quarter of 2018-19 against 2.5 percent in the year-ago.

Moody's Investors Service yesterday said that sustained weakening of the rupee is credit negative for Indian companies which generate revenue in rupees but rely on US dollar debt to fund their operations.

The Indian rupee has depreciated 13 percent so far in 2018 and touched a historic low of Rs 72.67 to a dollar Monday before a rebound on strong intervention of the Reserve Bank.

With PTI Inputs

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