Rupee slides further, opens 17 paise lower at 69.88 against US dollar

The domestic unit on Wednesday fell further by 28 paise to 69.71, extending its losses for the third straight day due to escalating US-China trade tensions and a massive sell-off in equity markets.

Continuing with its slide, the rupee on Thursday opened 17 paise lower at 69.88 against the US dollar amid foreign fund outflows and weak global cues. The domestic unit on Wednesday fell further by 28 paise to 69.71, extending its losses for the third straight day due to escalating US-China trade tensions and a massive sell-off in domestic equity markets. 

"Growing trade tension between the US and China lead concern for global growth and trade. Chinese Yuan becomes the worst performer among Asian Currencies after US President Trump's tweet on hiking tariff on Chinese goods from May 10," V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities said.

On Thursday, the USD/INR pair is expected to quote in the range of 69.4 and 70.20, according to Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL). 

On the global front, Asian shares hit six-week lows in the early trade as increased tensions ahead of key Sino-US trade negotiations fanned fresh concerns about the outlook for the global economy. MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.3 per cent to its lowest level since March 28, Reuters reported. 

In the overnight trade, Wall Street shares ended on a flat note, with the Dow Jones Industrial Average rising marginally, the S&P 500 and the Nasdaq Composite dropping 0.2 per cent and 0.3 per cent, respectively.

In the commodity market, oil prices dropped amid concerns over the escalating trade battle between the United States and China, despite a surprise fall in US crude stockpiles.