Rupee ends at record low as rebound in crude deepens CAD, inflation worries

Settles at 78.0825 to the dollar as against 77.9800 at 3:30 p.m. on Monday. The previous record closing low for the domestic currency was 78.0700 on June 17

The rupee settled at a fresh record low against the dollar on Tuesday as a rebound in global crude oil prices stoked worries over India’s current account deficit (CAD) and inflation.

A spate of overseas investment outflows from the financial markets, particularly equities, also weighed on the domestic currency, foreign exchange dealers said.

The partially-convertible rupee settled at 78.0825/$1 against 77.9800/$1 at 3:30 pm on Monday. The previous record low (closing) for the domestic currency was 78.0700/$1 on June 17.

Government bonds, too, weakened owing to the worries over elevated domestic inflation, with yield on the 10-year benchmark 6.54 per cent 2032 paper