Rupee crashes to over 2-month low on foreign fund outflows

The rupee Monday fell sharply by 59 paise to close at nearly two-and-a-half-month-low of 70.51 against the US currency due to persistent foreign fund outflows and renewed worries over rising crude oil prices.

An unabated sell-off in domestic equity markets also weighed on the domestic currency, forex dealers said.

The rupee opened sharply lower at 70.16 and fell further to touch over two-month low of 70.53 at the interbank foreign exchange market as oil prices rose over 1 per cent in global markets.

The local unit finally settled at 70.51, down by 59 paise over its previous close. The rupee had on Friday closed at 69.92 against the US dollar.

"Indian rupee plunges along with other emerging market currencies amid concerns of a drawn- out trade war.

"Sovereign bonds edged higher due to contraction in factory output and expectations of inflation staying below the target. This could force RBI to look for the Interest rate cut options in upcoming policy meet. Rise of more than 1.5 per cent