The rupee on Wednesday closed at a record low of 83.01 against the US dollar amid the outflow of foreign capital from India and rising crude oil prices in the global market, reported PTI.
Data showed that foreign institutional investors sold off shares worth Rs 153.40 crore on Tuesday. In the global market, oil benchmark Brent crude futures rose 0.82% to USD 90.77 per barrel.
On Wednesday morning, the rupee opened at 82.32 but dropped 69 paise during the intra-day trade to end at its all-time low.
Analysts also attributed the decline in rupee to indications that major central banks might hike interest rates amid high inflation, reported NDTV.
“With possibly the Reserve Bank of India buying dollars in currency futures yesterday indicating of things to come, it was only time when 82.40 would have been breached,” said Anil Kumar Bhansali, the head of Treasury at Finrex Treasury Advisors. “So no level seems to be sacrosanct for the rupee, and therefore 83.50 should be the next target once 83 is breached.”
Meanwhile, in the equity markets, the 30-share BSE Sensex gained 146.59 points, or 0.25%, to end at 59,107.19. The broader NSE Nifty rose 25.30 points, or 0.14%, to close at 17,512.25.