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Rupee Sinks to a Fresh Life Time Low At 72.97 Per Dollar

Image for representation.

Image for representation.

Analysts believe that a combination of surge in crude prices and trade war tensions weighed on the rupee.

New Delhi: Selloff in the last couple of hours ensured that the rupee ended the session at a record low. The currency closed at 72.97 per US dollar on Tuesday, according to Reuters. It fell to 72.98 per US dollar mark on an intra-day basis, data further revealed.

The rupee had opened marginally lower at 72.55 per dollar versus Monday's close 72.51.

Analysts believe that a combination of surge in crude prices and trade war tensions weighed on the rupee.

US President Donald Trump Monday announced imposing new tariffs on an additional USD 200 billion worth of imports from China, escalating the trade war with the Asian giant.

Alleging that China has been unwilling to change its unfair trade practices, Trump said the new additional tariff structure would be effective September 24 from when it would be at 10 percent until the year end, but would increase to 25 percent level from January 1.

Meanwhile, Bloomberg reported that Saudi Arabia is now comfortable with Brent rising above USD 80 as the global market adjusts to the loss of Iranian supply, also dampened sentiments.

US will impose a 10 percent tariff on about USD 200 billion of Chinese goods from September 24 and will immediately pursue further tariffs on about USD 267 billion of imports from the Asian nation if Beijing retaliates, President Trump said in a statement on Monday in Washington.

Chinese vice-premier Liu He is convening a meeting in Beijing on Tuesday morning to discuss the government’s response to the additional tariffs, Bloomberg reported.

Benchmark Sensex Index fell 0.78 percent or 294.84 points to 37,290.67. Since January, it has gained 9.5 percent.