Rupee falls to lifetime low
MUMBAI July 6: The rupee weakened sharply to a new lifetime low against the US currency on Tuesday amid sustained dollar strength and a record June trade deficit because of rising energy and gold import costs. The Indian currency ended trading at 79.36 against the dollar on Tuesday after hitting a low of 79.3750. The currency ended trading at 78.95 on the previous day. Data late on Monday showed India's June trade deficit widened to a record high of $25.63 billion, following a rise in crude oil and coal imports, from $9.61 billion a year earlier. Analysts and economists are expecting the country's current account deficit to widen to around 3.2% of the GDP in fiscal year 2023 compared with 1.2% in 2022. Experts opine that this is due to outflows of foreign investments is a major reason for the rupee fall, which has been aggravated by global uncertainties arising out of a geopolitical crisis due to the Russia-Ukraine war and tight monetary policy by the US Federal Reserve. Meanwhile, the Sterling slumped against to a two-year low against the dollar on Tuesday as a crisis in British Prime Minister Boris Johnson's government compounded pressure on a currency already reeling from recession fears and a resurgent greenback.