USD/INR hit a fresh record high of 71.36

• INR takes another hit on fears that new SEBI rules would trigger outflows.
• USDINR non-deliverable forwards (NDFs) continue to trend north.

The USD/INR pair opened at a record high of 71.36 and was last seen trading at 71.20.

The Rupee is reportedly being offered on fears that tighter rules on foreign funds ownership by entities of Indian origin introduced by the Securities and Exchange Board of India (SEBI) could lead to massive USD outflows.

It is worth noting that INR has lost ground since the beginning of the year, courtesy of the rate hikes in the US, rising oil prices and the resulting rise in the current account deficit.  

The NDFs continue to rise and were last seen at 71.40-71.50.