The rupee opened lower against the greenback on Thursday, extending losses to a fourth consecutive session, due to escalating US-China trade tensions.
At 09:10 AM, the rupee was trading at 69.88 a dollar, down 17 paise from its Wednesday’s close of 69.71. The home currency opened at 69.91 and touched a high and a low of 69.85 and 69.92 a dollar, respectively.
Investor sentiment took a beating after US President Donald Trump said on Wednesday said he would be happy to keep tariffs on Chinese imports, prompting Beijing to threaten retaliation.
China backtracked on substantial commitments it made during trade talks with the United States, prompting President Donald Trump to impose additional tariffs on Chinese goods, reported Reuters.
In currency markets, the dollar hovered near a six-week low against the Japanese yen, a perceived safe-haven, on growing worries over US-China trade war.
The US currency stood at 109.905 yen after going as low as 109.70 overnight, its weakest since March 25.
Markets were nervously awaiting the start of two-day trade talks in Washington later in the global day to see if Chinese negotiators can convince the White House to back down on a threatened tariff hike on Friday.
In commodity markets, oil prices declined as trade war concerns hampered global risk appetite.
International Brent crude oil futures were at $69.92 a barrel by 0102 GMT, down 44 cents, or 0.63 percent, from their previous settlement.
Meanwhile, foreign investors were net sellers in capital markets Wednesday pulling out assets worth Rs 701.50 crore on a net basis, provisional exchange data showed.
In debt markets, the yields on the 10-year government bonds were up 0.07 percent to 7.38 percent from its previous close of 7.38 percent. Bond yields and prices move in opposite directions.
First Published: IST