₹ slides for 6th straight day, crumbles 36p to 66.48 vs $
Mumbai: Extending its losing run for the sixth straight session, the rupee on Monday plummeted by a staggering 36 paise to hit a fresh 13-month low of 66.48 against the US dollar as rising crude prices and sustained foreign fund outflows led to subdued forex market sentiment.
This is the lowest closing for the home currency since March 10, 2017.
Overall sentiment for the Indian currency deteriorated further following a sudden spike in crude prices coupled with impending Fed rate hike fears.
Moreover, the Indian currency has been under pressure on growing market conviction of higher interest rate cycle after minutes of RBI's last policy meeting indicated a shift to more hawkish stance in June despite easing inflation.
The rupee rally is pretty much done and dusted at this juncture as the sudden oil spike in recent months is now posing a new dilemma for policy makers and potential risk of rising inflation, a forex dealer commented.
India benefited the most from low oil prices for the better part of the past three years, enjoying a lower import bill and improving its trade balance and current accounts, he added.
Foreign investors and funds pulled out nearly Rs 8,000 crore from the Indian capital markets so far this month due to 'considerable' volatility in global markets on account of the ongoing trade negotiations and firming up of bond yields.