MUMBAI: The rupee depreciated 11 paise to a record low of 78.96 against the US dollar in early trade on Wednesday, weighed down by continued foreign capital outflows. At the interbank foreign exchange, the rupee opened on a weaker note against the US dollar at 78.86, then lost ground to bid at 78.96 – its all-time low, recording a fall of 11 paise from the previous close.
The rupee on Tuesday lost 48 paise to close at a record low of 78.85 against the US dollar. The rupee opened weaker against the dollar on Wednesday as renewed focus on a weak economic outlook led to losses in Asian currencies and equities, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“reserve Bank” India (RBI) may be present to curb volatility, but crude oil strength may curb appreciation bias,” Iyer said, adding that the rupee is in the range of 78.50-79.10 on Wednesday. The rupee has depreciated 1.87 per cent so far this month and is down 6.28 per cent since the beginning of this year.
Global oil benchmark Brent crude futures fell 0.88 per cent to $116.94 per barrel. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent lower at 104.42.
On the domestic equity market front, the 30-share Sensex was trading 474.05 points or 0.89 per cent lower at 52,703.40, while the broader NSE nifty It declined 137.75 points, or 0.87 per cent, to 15,712.45. Foreign institutional investors were net sellers in the capital markets on Tuesday as they sold shares worth Rs 1,244.44 crore, according to stock exchange data.
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