Rupee tumbles as Nancy Pelosi's Taiwan visit sparks US-China tension

A fresh record high monthly trade deficit in July also weighed on sentiment in the domestic currency market, traders said

The rupee weakened sharply against the dollar on Wednesday as concerns of tension between US and China sparked by US Speaker Nancy Pelosi’s visit to Taiwan eroded risk appetite. It sent investors rushing to the safety of the greenback, dealers said.

The domestic currency also suffered against the dollar as exporters made a dash to lock in purchases of the greenback, noting weakness in the rupee on Wednesday. This came after a phase of significant appreciation in the local unit, dealers said. The rupee settled at 79.16 to a dollar against 78.71 on Tuesday. So far in 2022, the rupee