Forex traders said a firming dollar overseas also weighed on the rupee’s sentiments. However, a fall in crude oil prices in the international market limited the losses to the rupee.
The local currency opened flat at 78.13 against the dollar at the interbank foreign exchange market and saw a record high of 78.13 and a record low of 78.40 during the day’s trading.
The rupee finally closed at a record low of 78.32, down 19 paise against its previous closing price. The rupee had closed at 78.13 against the US dollar in the previous session.
Sugandha Sachdeva, Vice President, Commodities and Currency, Religare Broking said, “After hovering around the 78 mark for some time, amid unhindered outflows from domestic equities and strengthening of the dollar, the Indian rupee has hit a fresh new low against the dollar. The record went to the lowest level.
Jatin Trivedi, Vice President, Research Analyst Division, LKP Securities said, “The rupee weakened to below 78.30 on account of aggressive Fed Reserve’s stance and aggressive selling by foreign institutional investors in the Indian markets.”
Meanwhile, the dollar index, reflecting the US dollar’s position against the six major currencies, gained 0.05 per cent to 104.48.
Global oil index Brent crude futures fell 4.46 per cent to $109.54 per barrel.
The 30-share Bombay Stock Index closed at 51,822.53 points, down 709.54 points.
According to the provisional data of the stock market, foreign institutional investors were net sellers in the stock market. He sold shares worth a net Rs 2,920.61 crore on Wednesday.