As domestic indices turn flat, rupee sinks to all-time low of Rs 74.27 against US dollar

Reserving all its early morning gains, India rupee slipped to an all-time low of Rs 74.27 against the US dollar in the afternoon trade on Tuesday.

Elevation in crude oil prices and weak domestic market stocks forced rupee to slip to its all time low. (Image: PTI)

New Delhi: Reserving all its early morning gains, India rupee slipped to an all-time low of Rs 74.27 against the US dollar in the afternoon trade on Tuesday. According to market experts, an elevation in crude oil prices and weak domestic market stocks forced rupee to slip to its all time low. The Indian currency so far witnessed a fall of 2 per cent in October and 16 per cent in the year. Moreover, traders believe that unabated foreign fund outflows weighed on the rupee. At the Forex market, the domestic unit opened higher at 73.93 and advanced to 73.88 on fresh selling by exporters amid weakness in dollar against some currencies overseas. However, it turned weak and slipped to trade at a fresh lifetime low of 74.27, showing a fall of 21 paise over its Monday's close of 74.06. It broke previous record low (intra-day) of 74.23 reached on October 5. According to news agency PTI, the Brent crude breached the USD 84 a barrel-mark again and the American currency strengthened overseas. As per the provisional data, the Foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,805 crore Monday. Investors remained concerned over sustained foreign capital outflows and rise in crude oil price to 84.48. Several Forex dealers said that besides strong demand for the American currency from importers, concerns rising fiscal deficit and capital outflows weighed on the domestic currency. Meanwhile, the BSE benchmark Sensex dropped by 87.79 points, or 0.25 per cent, to 34,386.59 during mid-session. According to a report by Reuters, Asian shares hit 17-month lows on Tuesday as China allowed its currency to dip past a psychological bulwark amid sharp losses in domestic share markets, a shift that pressured other emerging currencies to depreciate to stay competitive. Even the domestic indices including Sensex and Nifty traded tightly in the afternoon session on Tuesday which led to a dip in shares of Tata Motors by nearly 20 per cent to seven-year low levels. The BSE Sensex plunged 189 points to an intra-day low of 34,285.06 points, while the NSE Nifty witnessed a downfall of 10,279.35 points intra-day.