The Indian rupee plunged to a fresh low of 72.92 against the US dollar, falling 22 paise during morning deals on Wednesday. The rupee, which opened at 72.75 against the greenback, slipped to a new record low of 72.9150/$, down 22 paise from its Tuesday’s close at 72.6950 vs dollar, Bloomberg data showed.
Rising crude oil prices, along with a widening current account and a stronger dollar on the back of escalating global trade war concerns, continued to put pressure on the rupee. Oil prices rose on Wednesday after a report of falling crude inventories and the looming sanctions against Iran fuelled expectations of a tightening market, said a Reuters report.
“On the domestic front, the investors may now change their focus towards the macro economic data to get cues on the RBI’s course of action in its upcoming meeting. IIP for Jul and CPI (Aug) are scheduled to be released today while Aug WPI is due on Friday. Trade balance figures will also be out during the week,” Geojit Financial Services said in a report.
“Now, for the domestic currency, 72.90 is a major level to watch below which more downside is expected while on the other side, 71.29 and 69.75 are the levels on the upside,” it added. The Indian Currency Markets will remain closed tomorrow (Thursday) on account of Ganesh Chaturthi.