The rupee depreciated 22 paise to a record low of 78.59 against the US dollar in early trade on June 28 as continued foreign fund outflows weighed on investor sentiment.
At the interbank foreign exchange, the rupee opened on a weaker note against the US dollar at 78.53, then lost ground to bid at 78.59 – its all-time low, recording a fall of 22 paise from the previous close.
On Monday, the rupee had closed down by 4 paise at its all-life low of 78.37 against the US dollar.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, “The continuous selling by FIIs in the domestic markets is also putting pressure on the rupee.
According to Mr Kalantri, further economic sanctions on Russia could push up global energy prices and put pressure on emerging market currencies. Kalantri said, “We expect the rupee to remain volatile this week and may cross the level of 78.55.”
Global oil benchmark Brent crude futures rose 1.20% to $116.47 per barrel.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 103.92.
On the domestic equity market front, the 30-share Sensex was trading 314.88 points or 0.59% lower at 52,846.40, while the broader NSE Nifty was trading 101.75 points or 0.64% lower at 15,730.30.
Foreign institutional investors were net sellers in the capital markets on Monday as they sold shares worth Rs 1,278.42 crore, according to stock exchange data.