Rupee slides to new low of 96.53 vs dollar

MUMBAI: The rupee weakened to a record closing low of 96.53 against the dollar on Tuesday, marking its sixth consecutive session of decline, as sustained high crude oil prices and adverse global cues weighed on the currency. The local unit closed 18 paise lower compared to 96.35 in the previous session, after touching an intraday low of 96.61, amid persistent pressure from external factors and weak market sentiment. High crude oil prices have triggered expectations of a widening current account deficit, with dealers saying that for the rupee to stabilise there need to be measures to curtail the deficit or a return of foreign investment flows. While there have been talks of tax breaks for foreigners investing in bonds, rising yields in the US render these tax breaks infructuous. Dealers said that the exchange rate appears to be headed towards the 97 level. Benchmark Brent crude has risen over 50% since the start of the conflict, posing a challenge for India, which imports most of its crude oil requirements.