Rupee falls to all-time low of 79.11 against US dollar

Agencies | New Delhi                                         

The Daily Tribune – www.newsofbahrain.com

The rupee depreciated 5 paise to an all-time low of 79.11 against the US dollar in opening trade on Friday amid persistent foreign capital outflows, news agency PTI reported.

The domestic unit continued to take a hit for the sixth straight session.

The rupee had slipped 3 paise to close at a record low of 79.06 against the US dollar in the previous session.

The American currency was little changed against major peers but was on track for its best week in four as investors weighed the boost from tighter U.S. Federal Reserve policy and the risks of recession.

Oil prices edged up in early trade today after falling around 3 per cent in the previous session. Brent crude futures rose 83 cents, or 0.8 per cent, to $109.86 a barrel. U.S. West Texas Intermediate (WTI) crude futures for August delivery rose 70 cents, or 0.7 per cent, to $106.46 a barrel.

"The fundamental risk factors remain intact as India sees the biggest FII losing streak, higher oil prices, hawkish Fed and rising trade deficit," said Amit Pabari, MD, CR Forex.

"Overall, the bets for further depreciation in rupee are stronger with RBI's action being noticed on every move. We expect the rupee to trade between 78.80- 79.20 in the short term before it slowly and gradually declines further," he added.

Meanwhile, Indian equity benchmarks traded lower in opening deals, moving in tandem with the global markets.

Asian stocks made a shaky start today as investors turned increasingly nervous about the global economic outlook. Overnight, Wall Street recorded a 21 per cent fall in the first six months of this year — the worst since 1970.