Mumbai: The Indian rupee lost further ground on the fourth straight session on Wednesday. The Indian currency declined sharply against the US dollar in early trade on Wednesday ahead of the Reserve Bank’s monetary policy decisions. Forex traders said that despite a steep fall in crude oil prices and a weak American currency, the looming worldwide trade war continued to stoke fears of global economic meltdown, fuelling withdrawal of foreign funds.
At the interbank foreign exchange, the rupee opened at 86.52 and hit the low of 86.60 before strengthening a tad to 86.56 against the US dollar in early deals, still sharply lower by 30 paise from the previous closing level. On Tuesday, the unit crashed 50 paise to settle at 86.26 against the dollar. This was the steepest single-day decline for the rupee since January 13, when it lost 66 paise. In the preceding two sessions on Monday and Friday, the rupee lost 32 paise and 14 paise, respectively.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.59 per cent lower at 102.09. Foreign institutional investors (FIIs) offloaded Indian equities worth Rs 4,994.24 crore on a net basis on Tuesday.
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