Dollar-rupee conversion rate: The rupee is down nearly 8 per cent against the US dollar so far this yearThe rupee (INR) shed 11 paise to close at 68.83 against the US dollar (USD) on Tuesday.
Demand for the dollar by importers led to some depreciation for the rupee, say analysts.
World share markets remained near three-week highs, supported by optimism about US company earnings and the notion that global economic growth can withstand trade tensions.The dollar index, which measures the greenbackagainst a basket of currencies,rose 0.15 per cent.
At 68.83, the rupee was not far fromanall-time closing low of 68.95 against the US dollar registered last week.
Dollar strength, lack of foreign investment inflows and concerns over rising crude oil prices are likely to keep the rupee under pressure and push it down to the 70 mark against the US dollar this week, according to bankers.1.
The rupee traded in the range of68.73-68.85 during the session.It had opened at 68.78 against previous close of 68.72.2.Foreign fund outflows from capital markets and crude oil prices regaining $79/barrel mark on supply concerns also weighed on the rupee sentiment, dealers said.Foreign investors have pulled out more than Rs 3,500 crore from equity and debt markets in the previous two sessions, provisional data showed.3.
In the international oil market, Brent crude futures rose by 64 cents to $78.71 per barrel in recent trade.
Earlier, the global benchmark hit a session high of $79.51 per barrel.Last month, the US said it wanted to reduce oil exports of fifth-biggest producer Iran to zero by November.Yet supply concerns elsewhere were pushing Brent prices higher.( Petrol, diesel prices hiked for sixth straight day)4.
Financial Benchmarks India Private Limited (FBIL), which on Tuesday took over from the Reserve Bank of India the responsibility of computation and dissemination of reference rate for the dollar-rupee pair and other major currencies, fixed the reference rate at 68.7942 for dollar.5.The RBI will not be comfortable with the currency touching 70 against the dollar and will strongly defend the domestic currency, according to bankers.