New Delhi. Due to the strengthening of the US currency and continuous outflow of foreign capital, the rupee fell by 46 paise to reach a new all-time low of Rs 85.73 against the US dollar in early trade on Friday. This is the biggest single day fall in the rupee.
According to analysts, the local unit came under pressure due to the strengthening of the dollar amid increased demand for the dollar from importers for month-end and year-end payment obligations. However, softening global crude oil prices and positive cues from domestic equity markets limited the downside in the Indian unit.
The rupee opened weak at 85.31 at the Interbank Foreign Exchange Market and soon fell to its all-time low of 85.35, a fall of 8 paise from its previous close. The rupee fell 12 paise to its record low of 85.27 against the dollar on Thursday. Earlier, it had fallen by 13 paise in two trading sessions.
Meanwhile, the dollar index, which measures the greenback's strength against six currencies, was trading 0.04 per cent higher at 107.93, while yields on US Treasuries were rising and 10-year bonds were at around 4.50 per cent. Global oil benchmark Brent crude futures trading rose 0.07 percent to $ 73.31 per barrel.
In the domestic stock market, the main index of 30 shares, Sensex, was trading at 78,679.64 points, up by 207.16 points or 0.26 percent. Nifty was up 88.50 points or 0.37 percent at 23,838.70. According to stock market data, foreign institutional investors (FIIs) were net sellers in the capital market on Thursday and sold shares worth Rs 2,376.67 crore.
