Mumbai, May 12: The rupee depreciated 40 paise to close at a fresh all-time low of 95.68 against the US dollar on Tuesday, as renewed tension between the US and Iran has led to risk aversion in global markets.
Forex traders said market sentiment remained dominated by fears that the 10-week-old conflict could further tighten global supply, particularly after President Donald Trump rejected Tehran’s latest response to a US-backed peace proposal, calling it totally unacceptable.
Moreover, market participants interpreted Prime Minister Narendra Modi’s comments over the weekend regarding fuel conservation and lower imports as a subtle acknowledgement that India’s trade deficit and balance-of-payments pressures could worsen if crude prices remain elevated for longer.
At the interbank foreign exchange, the rupee opened at 95.57 and lost further ground to touch an all-time intraday low of 95.74 against the American currency. (PTI)
