Rupee falls: The rupee fell 40 paise to an all-time low of 81.93 against the US dollar in early trade on Wednesday as firmness in the US currency and risk-averse sentiment among investors weighed on the local unit.
Besides, a negative trend in domestic equities and significant foreign fund outflows dampened investor appetite, forex traders said.
At the interbank forex, the rupee opened at 81.90 against the greenback, then fell to 81.93, registering a fall of 40 paise over the previous close.
On Tuesday, the rupee consolidated in a narrow range and closed 14 paise higher at 81.53 against the dollar.
The rupee opened weak on Wednesday as the dollar resumed its upward momentum backed by Fed talk, said Sriram Iyer, Senior Research Analyst, Reliance Securities.
The local unit could track weakness in Asian and emerging market peers, Iyer said, adding that a delay in inclusion of local bonds to list on a major global index this year could also boost gains.
“The Reserve Bank of India (RBI) may be present to contain the volatility,” Iyer said.
Read also| Delhi Liquor Policy Scam: A day after CBI nabs Delhi businessman, ED arrests liquor trader
Read also| Over 3,600 fresh COVID-19 cases reported in India in last 24 hours, active cases come down to 40,979