Rupee at new low of 69.05/$ as Asian currencies tumble

MUMBAI: The rupee on Thursday weakened past 69 to a dollar to close at a yet another record low, tracking losses among Asian peers.

The rupee ended at 69.05 a dollar, down 0.62% from its previous close of 68.62.

The currency opened at 68.68 a dollar and touched a low of 69.07 a dollar.

The last time the rupee hit an all-time closing low of 68.9413 was on 5 July. It touched all-time intraday low of 69.0925 on 28 June.

The Bloomberg Dollar Spot Index rose for a third day as the greenback strengthened against all major peers.

US Treasuries edged lower for a fourth day, pushing the 10-year yield to 2.89%, its highest since June 26

Fed Chairman Jerome Powell warned that an escalating trade dispute could hurt economic growth but he laid out an upbeat assessment of the economy that could keep the central bank on a gradual path of tightening policy.

Traders were also worried as the yuan weakened to a one-year low after the People’s Bank of China (PBOC) showed little sign of intervening to slow the currency’s descent.

The yuan dropped 0.3% to 6.7652 per dollar, the lowest level since July 2017, after PBOC weakened its fixing beyond 6.7 for the first time since the currency began tumbling in June.

The yuan has fallen more than 4% in the past month, the worst performance among 31 major currencies, as the world’s second largest economy showed signs of slowing and a trade spat with the US escalated.

President Donald Trump’s top economic adviser blamed Chinese President Xi Jinping for holding back talks aimed at easing a trade confrontation with the US.

“The worsening of India’s external position amidst tightening global financial conditions and dollar strength has resulted in the rupee weakening to an alltime low,” said brokerage firm UBS in a 11 July report.

The rupee has weakened 7.4% so far this year, while foreign investors have sold $964.30 million and $6.36 billion in the equity and debt markets, respectively.

The benchmark Sensex index fell 0.06% or 22.21 points to 36,351.23. Since January, it has gained 7%.

The 10-year bond yield stood at 7.782%, up from Wednesday’s close of 7.752%. Bond yields and prices move in opposite directions. Bloomberg contributed to this story.