Rupee slips 41 paise to 79.36; dollar index surges to 2-decade high

Rupee may sink to 82 against dollar in Q3, high trade deficits will be the norm now, says Nomura

The rupee dropped to a new low versus the US dollar on Tuesday as sentiment for the domestic currency took a turn for the worse after trade deficit hit a record high in June.

The rupee slumped 0.5 per cent to close at a fresh low of 79.36 per US dollar on Tuesday. The previous closing low for the rupee was 79.04 per US dollar on July 1. Unabated outflows of overseas investment from Indian equity markets added to the rupee’s woes, with traders predicting fresh weakness for the currency going ahead, given the unfavourable outlook on the current account amid