The rupee declined 8 paise to close at an all-time low of 88.18 (provisional) against the U.S. dollar on Tuesday, as uncertainty over the India-US trade deal and weak domestic equity markets further pressurised the domestic unit.
Additionally, persistent foreign fund outflows further weakened the local unit, said forex traders.
On Monday, the rupee had fallen to an all-time low of 88.33 against the greenback during the day to finally settle at 88.10.
At the interbank foreign exchange market, the rupee opened weak at 88.14 against the US dollar, then lost more ground in intra-day dealings.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.63 per cent to 98.38.
Also Read: Rupee tumbles to all-time low, forcing RBI to intervene
“We expect the rupee to trade with a slight negative bias as uncertainty over trade tariffs and weak domestic markets may pressurize the local unit,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.
“FII outflows and a positive tone in crude oil prices may further weigh on the domestic currency,” he further shared.
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