The rupee hit a new record low of 74.27 against the USD in afternoon trade today after Brent crude breached the $84 a barrel-mark again and the American currency strengthened overseas.
Moreover, unabated foreign fund outflows weighed on the rupee, traders said.
At the forex market, the domestic unit opened higher at 73.93 and advanced to 73.88 on fresh selling by exporters.
However, the Indian rupee turned weak and slipped to trade at a fresh lifetime low of 74.27, showing a fall of 21 paise over its yesterday's close of 74.06. It broke previous record low (intra-day) of 74.23 reached on October 5.
Consequently, BSE benchmark Sensex too dropped by 0.25% during mid-session.
Foreign institutional investors sold shares of net worth Rs. 1,805cr yesterday, provisional data showed.
Meanwhile, investors remained concerned over sustained foreign capital outflows and rise in crude oil price to $84.48.
Forex dealers said besides strong demand for American currency from importers, concerns rising fiscal deficit and capital outflows weighed on the domestic currency.
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