The rupee fell 5 times to an all-time low of 85.16 against the US dollar in early trade.
The rupee fell 5 times to hit a record low of 85.16 against the US dollar in early trade on Tuesday, amid a strengthening US currency and continued foreign currency outflows.
Forex dealers said higher demand for dollars and a rise in crude oil prices due to geopolitical instability pushed the local unit lower as the domestic equity market provided some cushion.
They said a strong dollar and rising bond yields in the US had prompted foreign investors to look for profits by selling Indian equities. During foreign exchange, the rupee opened at 85.10 and fell sharply to as low as 85.16 in comparison. the greenback, registering a loss of 5 paise from its previous closing level.
On Monday, the rupee settled down 7 points at 85.11 against the US dollar.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.10 percent higher at 107.92, amid rising US Treasury yields and fears of a delayed interest rate cut by the US Federal Reserve.
Brent crude, the global oil benchmark, rose 0.30 percent to USD 72.85 per barrel in futures trading. Ahead of the domestic equity market, the benchmark 30-share index Sensex was trading marginally higher by 15.97 points, or 0.02 percent at 78,556.14 points. .
The Nifty was up 13.70 points, or 0.06 percent, at 23,767.15 points. Foreign Institutional Investors (FIIs) were the real sellers in the capital market on Monday, as they offloaded shares worth Rs 168.71 crore, according to exchange data.
