Rupee Extends Fall To Second Day, Closes At Record 70.74 Against Dollar

Extending its fall to a second straight session, the rupee declined 15 paise to close at a record 70.74 against the dollar on Thursday. That marked the weakest closing level for the rupee against the US currency. Sustained month-end dollar demand from importers and rising crude oil prices dragged the rupee lower against the greenback. During the session, the rupee registered a life-time low of 70.90. On Wednesday, the rupee had closed at 70.59, registering its biggest single-day decline against the American currency since August 13. Analysts will closely watch GDP data due on Friday.

Crude oil prices extended gains to touch their highest level in a month, with benchmark Brent around $77.45 a barrel. Brent has risen almost 10 per cent over the last two weeks on easing of oversupply-related concerns.

"The firming up of the oil prices to $75+ levels is going to lead to widening of the current account deficit and inflation leading to weakening of the rupee," said Salil Datar, executive director and CEO, Essel Forex.

A stronger dollar in overseas markets and losses in domestic stocks markets also impacted the rupee sentiment.

"The global factor of trade wars and Turkey has strengthened the dollar and weakened currencies of several countries," CARE Ratings chief economist Madan Sabnavis said.

The dollar index - which measures the greenback against six major currencies - rose 0.11 per cent to 94.56 in recent trade. It had touched a four-week low on Tuesday.

Meanwhile, the stock markets finished Thursday's session on a mildly negative note, as caution prevailed ahead of expiry of derivatives. The day marked the expiry of derivatives contracts for the month of August.

The government is due to release the GDP data for the April-June period on Friday.

(With agency inputs)