Rupee sheds 21p to dollar as Polish missile strike sparks risk aversion

Wider October trade deficit, contraction in exports drag down rupee

The rupee weakened on Wednesday as a missile strike in Poland sparked concerns of an escalation of geopolitical conflicts amid the ongoing war between Russia and Ukraine.

A wider domestic monthly trade deficit and a contraction in exports for the first time in two years also weighed on the rupee.

The local currency closed at 81.31 to the dollar as against 81.10 on Tuesday. So far in 2022, the rupee has depreciated 8.6 per cent against the greenback.

Polish authorities said early on Wednesday that a missile made in Russia had killed two people. The incident led to fears of