Rupee vs dollar: The rupee slumped to a fresh record low during late afternoon deals on Tuesday, falling 29 paise to low of 72.7388 against the US dollar. In opening trade, the domestic currency had witnessed a mild recovery and opened 15 paise higher at 72.2962 against the greenback, Bloomberg data showed. However, a sharp rise in crude oil prices put pressure on the rupee and it slumped to a new record low of 72.74/$.
Following the slump in the rupee, the domestic equity market, too, extended losses, with the Sensex of the BSE tumbling over 500 points. On closing, the Sensex was down 509.04 points, or 1.34%, at 37,413.13 points. On the National Stock Exchange, the Nifty 50 closed at 11,287.50 points, down 150.60 points or 1.32%. On Monday, the domestic currency had tumbled nearly 93 paise to a fresh record low of 72.6738 against the greenback, before staging a mild recovery to close trade at 72.4450.
Oil prices rose on Tuesday as U.S. sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output, said a Reuters report. Benchmark Brent crude oil was up 40 cents at $77.77 a barrel by 0950 GMT. U.S. light crude was up 5 cents at $67.59.
Globally, lingering trade war worries saw emerging-market stocks whither to a fresh 15-month low on Tuesday, though a tepid dollar gave currencies a chance to recover with Russia’s rouble chalking up healthy gains before a central bank meeting later this week, said a Reuters report. However, emerging-market currencies enjoyed a bounce back against the dollar.