Rupee plummets 68 paise to close at 79.21 against U.S. dollar

Mumbai The rupee slumped 68 paise to close at 79.21 (provisional) against the U.S. dollar on Wed

The rupee slumped 68 paise to close at 79.21 (provisional) against the U.S. dollar on Wednesday, as disappointing macroeconomic data weighed on investor sentiment.

At the interbank foreign exchange market, the local currency opened lower at 78.70 and fell further to settle at the day's low of 79.21.

On Tuesday, the rupee rallied 53 paise — its best single-day gain in over 11 months — to close at an over one-month high of 78.53 against the U.S. dollar.

“Dismal macroeconomic data from India also put downside pressure on Rupee. India Services PMI declined to 55.5 in July from 59.2 in June while Composite PMI declined to 56.6 from 58.2 during the same period.”

"India's trade deficit widened to a record low $31.02 billion in July compared to $26.18 billion in June," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

However, decline in crude oil prices and foreign fund inflows cushioned the downside. FIIs remained net buyers in the capital market on Tuesday as they purchased shares worth ₹825.18 crore, as per exchange data.

Brent crude futures, the global oil benchmark, fell 0.95% to $99.58 per barrel.