Rupee falls by 19 paise to 85.63 against the US dollar in early trade amid stock market crash

Amid the global trade war sparked by the US reciprocal tax and China's retaliatory action, which also sent global financial markets down to all-time lows, the rupee fell 19 paise to 85.63 against the US dollar in early trading on Monday. Forex brokers claim that despite the constant withdrawals of foreign funds in tandem with the worldwide sell-offs, the domestic currency was not supported by a sharp drop in petroleum prices and a depreciating US dollar.

As the Reserve Bank of India's monetary policy committee got underway with its three-day discussion of key interest rates, they noted that market participants were still worried. On Wednesday, the six-member rate-setting panel will make its judgment public.

The rupee registered a 19 paise decline from its previous closing level at the interbank foreign exchange, having begun at 85.79 and strengthened somewhat to trade at 85.63 versus the US dollar.