Mumbai: The rupee hit a fresh low against the US dollar on Tuesday tracking losses in global currencies due to deepening trade tensions between the US and China. At 2.30pm, the home currency was trading at 74.24 a dollar, down 0.22% from its Monday’s close of 74.07. The currency opened at 73.85 against the dollar and touched an all-time low of 74.27.

The US was concerned about the yuan’s depreciation as the Treasury Department weighed whether to name China a currency manipulator in its semi-annual report due next week, Bloomberg reported.

Also, the International Monetary Fund lowered its world growth forecast to 3.7% for this year from 3.9% projected three months ago. The IMF cited escalating trade tension and stress in emerging markets.

The 10-year gilt yield stood at 8.055%, up from its previous close of 7.975%. Bond yields and prices move in opposite directions.

The benchmark Sensex rose 0.13% to 34,518.02 points. Year to date, it has gained 1.8%.

So far this year, the rupee has declined 14%, while foreign investors have sold $3.42 billion and $7.25 billion in the equity and debt markets, respectively.

Asian currencies were trading lower. The South Korean won was down 0.23%, Thai Baht 0.16%, Indonesian rupiah 0.13%, Singapore dollar 0.13%, Hong Kong dollar 0.06% and Taiwan dollar 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.758, down 0.01% from its previous close of 95.761.

Bloomberg contributed to this story