Rupee hits all-time low: Here are 4 reasons why it is losing currency

The Indian rupee touched a fresh record low of 68.89 against the dollar in opening trade, falling 26 paise from the previous close.

On Tuesday, the rupee plunged by 30 paise to hit a 19-month low of 68.54 against the US dollar in early trade. In the previous session, rupee posted the biggest single session fall against dollar since June 19.

As the fall in rupee value against dollar continues, here are four possible reasons behind the fall:

•  Dollar demand

The dollar's strength against some currencies overseas weighed on the local unit. Dollar strength has risen against its major crosses.

• OPEC announcement

Post the OPEC announcement last week, crude prices have been finding support on lower levels and subsequently keeping currency under pressure.

•  Trade war rhetoric

The rupee depreciated sharply against the dollar in the backdrop of the rising trade war rhetoric led by the United States, ICICI Direct said.

•  Trends in other markets

Weakness in Chinese Yuan and other emerging market currencies, including the rupee, are under pressure against the US dollar, said Motilal Oswal.