Rupee falls 9 paise to record low of 90.87 against US dollar in early trade

The rupee plunged 9 paise to a record low of 9087 against the US dollar in early trade on Tuesday weighed down by sustained FII outflows and no breakthrough in the IndiaUS trade dealHowever a weaker greenback and a decline in global crude oil prices capped further losses in the domestic unit according to forex tradersAt the interbank foreign exchange the rupee opened at its alltime low of 9087 against the US dollar down 9 paise from its previous close and traded in a narrow range of 9077 9087 in early tradeThe rupee on Monday settled at a new alltime low of 9078 against the US dollar registering a loss of 29 paise over its previous close weighed down by uncertainty over an IndiaUS trade deal and persistent foreign fund outflowsThe USIndia trade deal still seems to be off by a distance with the Commerce Secretary saying the first phase will be signed before the end of the year and news that we are closest to the deal being signed The uncertainty has clouded the recovery on the USDINR pair as the rupee opened lower with dollar buying happening every day Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP saidEven a reduction in trade deficit on Monday could not bring about a recovery in the rupee with Foreign Institutional Investors FII outflows continuing he addedAccording to the latest government data released on Monday Indias trade deficit narrowed to a fivemonth low of USD 2453 billion in November as exports rebounded by 1937 per cent to a sixmonth high of USD 3813 billion after contracting in October driven by higher shipments of engineering and electronics goodsAt the same time the countrys imports dipped by 188 per cent to USD 6266 billion due to a fall in the inbound shipments of gold crude oil coal and cokeFIIs sold equities worth Rs 146832 crore on Monday according to exchange dataAlso wholesale price inflation stayed in the negative for the second consecutive month in November at 032 per cent even though there was an uptick in prices of food articles like pulses and vegetables on a monthonmonth basis government data showed on MondayWholesale Price Index WPIbased inflation was at 121 per cent in October and 216 per cent in November last yearMeanwhile the dollar index which gauges the greenbacks strength against a basket of six currencies was trading 003 per cent lower at 9827Brent crude the global oil benchmark was trading 061 per cent lower at USD 6019 per barrel in futures tradeOn the domestic equity market front the 30share benchmark index Sensex declined 36392 points to 8484944 in early trade while the Nifty was down 10665 points to 2592065This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever