The Indian rupee slumped to a new record low against the US dollar on Monday amid weakness in the equities markets. Sentiments were fragile as foreign investors continue to desert Indian equity markets and have pulled out over Rs 4,000 crore this month so far amid steady appreciation of the dollar and rising interest rates in the US. Traders also got anxious with a private report stating that India's headline retail inflation rate is expected to be 7 percent in June, largely unchanged from 7.04 percent in May, with a sharp pick-up in vegetable prices likely nullifying the impact of the decline in prices of other food items. On the global front, euro tumbled against dollar on Monday as the biggest single pipeline carrying Russian gas to Germany entered annual maintenance, with flows expected to stop for 10 days.
Finally, the rupee ended at 79.45 (provisional), weaker by 19 paisa from its previous close of 79.26 on Friday. The currency touched a high and low of 79.50 and 79.24 respectively.
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