Rupee Declines 16 Paise To Fresh Record Low Of 77.60 Against Dollar

The rupee on Wednesday declined 16 paise to close at its fresh lifetime low of 77.60 against the U.S. dollar, amid unabated foreign fund outflows and a stronger greenback in overseas markets.

At the interbank foreign exchange market, the rupee opened lower at 77.57 and later hit the day's low of 77.61 as the dollar rebounded in global markets following hawkish comments from U.S. Federal Reserve Chairman Jerome Powell. Crude oil prices also surged more than 1% which weighed on the rupee.

The local unit finally ended at its all-time low of 77.60, showing a loss of 16 paise over its previous close of 77.44.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.3% higher at 103.59. "The dollar index took support near 103.50 and capital market witnessed profit booking from higher levels, sending rupee into weakness," said Jateen Trivedi, vice president (research) and analyst at LKP Securities.

Fed Chairman Powell has asserted that the U.S. central bank will increase interest rates as high as needed to contain a spike in inflation that threatens the foundation of the economy.

On Wednesday, the 30-share BSE Sensex settled 109.94 points, or 0.20%, lower at 54,208.53. During the day, it hit a high of 54,786 and a low of 54,130.89. The broader NSE Nifty dipped 19 points or 0.12% to finish at 16,240.30.

Foreign institutional investors remained net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,192.44 crore, as per stock exchange data.