INR slips to lifetime low as tariff concerns weigh

The Indian rupee depreciated 10 paise to close at an all-time low of 88.19 (provisional) against the US dollar on Monday amid India-US trade deal uncertainties and higher dollar demand from importers. The domestic currency opened on a weaker note and revisited its all-time intra-day low of 88.33 against the American currency, weighed down by persistent foreign fund outflows. However, positive equities limited downside in the counter. At the interbank foreign exchange market, the rupee opened at 88.18 against the US dollar, then lost ground and fell to an all-time intra-day low of 88.33, as additional trade tariffs on India by the US raised concerns over India's trade deficit. Indian shares rose sharply on Monday as new data showed the Indian economy remains on a solid footing. The GDP print for the first quarter stood at 7.8 percent, the highest in five quarters and coming well above the consensus estimate of 6.8 percent. The benchmark BSE Sensex jumped 554.84 points, or 0.70 percent, to 80,364.49 while the broader NSE Nifty index closed up 198.20 points, or 0.81 percent, at 24,625.05.