The rupee settled at 71.75 against 71.58 at the previous close. The local unit moved in 71.9675-71.3725 per dollar band intra-day.
The Indian rupee continued its downtrend to end at a record low for a sixth day against the dollar, as persistent sell-off across other emerging market peers prompted fears of foreign fund outflows from Asia’s third largest economy. The rupee’s decline is broadly driven by strength in the dollar index and sell-off across other EM currencies.
Global Currency
The dollar rose broadly on Wednesday as concerns grew that U.S. President Donald Trump may soon ramp up a trade war with Beijing by imposing tariffs on more Chinese imports. Dollar index which measures the U.S. unit against a basket of six currencies, was up 0.2 percent at 95.662 as of 0750 GMT, not far off a two-week high of 95.737 reached during the previous session.
This year began with the dollar in retreat and investors convinced of further declines but now there appears to be very little to stop its ascent.
The Dollar is up in 2018 against every major currency except the Mexican peso and Japanese yen. But some analysts believe the dollar may yet stumble before the year is out.
Global Markets
Oil extended losses on Wednesday, falling towards $77 a barrel, as a tropical storm hitting the U.S. Gulf coast weakened, offsetting support from forecasts of lower U.S. inventories and sanctions against Iran. Brent crude the global benchmark, fell $1.02 to $77.15 a barrel.
Gold prices edged up on Wednesday, supported by technical buying amid worries over inflation in emerging markets, but gains were curbed as the dollar rose broadly on heightened concerns about international trade conflicts.
