Rupee hits fresh low of 72.73, drops 28 paise against US dollar
Crude oil prices went past the $78 a barrel mark, along with unabated foreign fund outflows and sharp plunge in domestic equities weighed on the rupee
Continuing its slide, the rupee Tuesday hit yet another record low of 72.73 against the US dollar, falling 28 paise in late afternoon trade on strengthening American currency as crude oil prices went past the USD 78 a barrel mark.
Besides, unabated foreign fund outflows, sharp plunge in domestic equities with the benchmark Sensex crashing by over 500 points, too, weighed on the domestic unit, dealers said.
The rupee Tuesday opened on a positive note by inching 20 paise higher at 72.25 against the US dollar amid increased selling by banks and exporters.
The currency, however, failed to sustain strength and weakened to hit a fresh lifetime low of 72.73, down by 28 paise over its previous closing of 72.45. It breached its previous record low (intra-day) of 72.67 hit Monday.
There were no signs of change in trading preference of foreign portfolio investors who sold shares worth a net of Rs 841.68 crore. Domestic institutional investors (DIIs) also offloaded equities worth a net of Rs 289.66 crore Monday, according to provision data.
Meanwhile, the BSE Sensex plunged 509.04 points, or 1.34 per cent, to close at 37,413.13 in Tuesday's session.