The rupee fell 5 paise to a low of 79.11 against the US dollar in early trade on Friday as continued foreign fund outflows weighed on investor sentiment.
At the interbank forex, the rupee opened on a weaker note against the US dollar at 78.99, then lost ground to bid at 79.11 – its all-time low, recording a fall of 5 paise from the previous close.
On Thursday, the rupee had closed 3 paise lower at a new life level of 79.06 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21% higher at 104.90.
According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the rupee opened lower as there is no sign of fund inflows or strength in Asian currencies, reduction in Brent crude oil prices or hike in interest rates.
Mr. Bhansali said, “All these are an enemy to the rupee and only RBI supports it and keeps it in a small range. Suddenly one day we may see the next spike.”
Global oil benchmark Brent crude futures rose 0.05% to $109.09 a barrel.
On the domestic equity market front, the 30-share Sensex was trading 411.74 points or 0.78% lower at 52,607.20, while the broader NSE Nifty was trading 123.10 points or 0.78% lower at 15,657.15.
Foreign institutional investors were net sellers in the capital markets on Thursday as they sold shares worth 1,138.05 crore, according to stock exchange data.