The rupee hit a record low against the US dollar in early trade on Tuesday amid concerns of a widening trade deficit and a sell off of assets by foreign investors.
On the interbank forex market on Tuesday, the rupee opened 9 paise lower at 79.04 against the American currency, according to PTI.
India is trying to “address volatility” in the rupee that has tumbled to record lows against the dollar in recent weeks, a government official said on Monday, as per a Reuters report.
India’s June trade deficit widened to a record $25.63 billion, pushed by a rise in crude oil and coal imports, from $9.61 billion a year ago, adding to fears of further pressure on the rupee, the Reuters report said.
New Delhi is worried about rising imports after a surge in global crude and commodity prices following the Ukraine war, and rising demand for coal and other goods fuelled by the domestic economic recovery.
Rupee has plunged 6 per cent against the US dollar this year, weighed down by broad strength in the greenback and as investors retreated from domestic share markets.
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