Rupee opens 29 paise lower at 67.37 against US dollar

NEW DELHI: The rupee on Wednesday opened 29 paise lower at 67.37 against the US dollar.

The domestic unit on Tuesday recovered from 15-month low to close five paise higher at 67.08.

Suspected intervention by the Reserve Bank of India coupled with dollar selling by foreign banks predominantly helped the rupee to stay afloat on Tuesday, PTI reported, quoting a forex dealer.

However, experts are predicting further downside for the domestic currency. According to an ET poll, rupee may slip below Rs 70 against the greenback by end of the year. Deutsche Bank, DBS Bank, Bank of America, Yes Bank, IFA Global and Edelweiss Financial Services were among those predicting the local currency to hit the 70-mark or fall beyond it.

Rising crude prices have been one of the biggest factors dragging the rupee lower. Brent prices are already near their late-2014 highs. The rise amounts to over 65 per cent since June last year.

Oil prices rose more than 2 per cent to a three-and-a-half year high on Wednesday after US President Donald Trump abandoned an international nuclear deal with Iran, likely curbing the OPEC-member's crude exports in an already tight market, Reuters reported.