Rupee falls 16 paise to record low of 77.60 against U.S. dollar

The rupee on May 18 declined by 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 chief Jerome Powell.

Crude oil prices also surged over 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 took support near 103.50 and the capital market witnessed profit booking from higher levels, sending rupee into weakness,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

The U.S. Fed chief asserted that the central bank would increase interest rates as high as needed to contain a spike in inflation which threatens the foundation of the economy.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.3% higher at 103.59.

Global oil benchmark Brent crude futures rose 1% to $113 per barrel.

Meanwhile, 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 ₹2,192.44 crore, as per stock exchange data.