The rupee on May 6 fell by 18 paise to close at 69.40 against the US dollar as renewed trade war worries following US President Donald Trump's threat to raise tariffs on Chinese imports sent markets into a tailspin and triggered flight of capital to safe bets. Foreign investors were net sellers in capital markets Monday selling assets worth Rs 948 crore on a net basis, provisional exchange data showed.
Forex dealers said that Trump's comment that he would raise taxes on $ 200 billion of Chinese products to 25 per cent from 10 per cent from Friday affected investor sentiment in the currency market. Other currencies such as the Turkish lira, the Mexican peso, and the Australian dollar declined up to 0.5 per cent on trade worries.
The rupee opened weak at 69.38 and fell further to the day's low of 69.46 at interbank forex market. The local currency, however, pared losses to close at 69.40, down 18 paise from the previous close. The rupee had strengthened by 15 paise to close at 69.22 against the US dollar Friday. The BSE Sensex Monday cracked over 362.92 points in line with global sell-offs amid renewed fears that trade negotiations between the US and China are on the verge of collapse.
