Weakening for the third consecutive day, the Indian rupee touched a 19-month low of 68.70 per dollar on Wednesday due to rising crude oil prices and the ongoing trade war concerns.
It ended 36 paise weaker at 68.61 against the previous close of 68.25 per greenback.
“The Indian rupee fell to a 19-month low of 68.70, pressured by rising oil prices and continuing trade wars, which could result in more bouts of FII (Foreign Institutional Investors) outflows,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Jasani further told IANS, the rupee could cross the 70-mark over the next few weeks “if the situation does not ease out soon.”
Crude oil prices surged on Wednesday after the US government said companies buying Iranian crude oil after November 2018 would face sanctions by Washington.
Further, on the trade front, concerns of a trade-war like situation between the US and other major economies such as China and the European Union also kept sentiments weak across markets.
