The rupee weakened for the second straight session Thursday, slipping by 2 paise to 70.20 against the US dollar on robust foreign fund outflows amid rising trade deficit worries.
Meanwhile, the yen surged to multi-year highs on safe-haven buying following a ‘flash crash’ that spooked the global currency markets.
Forex traders said rising domestic fiscal deficit worries, firming crude prices and sustained foreign fund outflows weighed on the local unit.
At the Interbank Foreign Exchange (forex) market, the rupee opened lower at 70.30 and fell further to touch the day’s low of 70.53.
The domestic currency, however, pared some losses and finally ended at 70.20 per dollar, down by 2 paise against its previous close.