the rupee today collapsed to a lifetime low of 69.12 against the US dollar after the Chinese central bank weakened its daily reference...

Continuing its slide for the third session, the rupee today collapsed to a lifetime low of 69.12 against the US dollar after the Chinese central bank weakened its daily reference rate for the yuan by the most in two years. The yuan dropped further by 0.28 percent to 6.7943 per dollar, its lowest levels in a year following a rising slump in recent weeks as the trade war between the US and China brewed. At the interbank foreign exchange market, the rupee opened higher at 69 a dollar against 69.05 previously. 

Trade war between the US and China

However, following the plunge in the yuan, the domestic currency fell to an all-time intra-day low of 69.12 against the American currency, showing a fall of 7 paise. The rupee's previous all-time intra-day low was 69.10, touched on June 28. A mad rush for the dollar was witnessed as importers expected further erosion in the rupee value, forex dealers said. Yesterday, the rupee took a hard 43-paise knock to close below the 69 level for the first time at a historic low of 69.05 against the US currency as upbeat comments on the US economy by the Federal Reserve chairman drove the greenback to one-year high levels higher against global currencies.

Foreign Portfolio Investors

Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth a net of Rs 315.69 crore yesterday, provisional data showed. The benchmark BSE Sensex rose by 71.68 points, or 0.20 percent, at 36,422.91 in early trade today.