The rupee on Tuesday slumped 16 paise against the dollar to trade at a life-time low of 71.37 on strong demand for the US currency.
At the Interbank Foreign Exchange, the local currency opened at a record low of 71.24 against a dollar, down from its previous close of 71.21, and weakened further to trade at a fresh low of 71.37, down 16 paise.
Forex dealers said besides strong demand for the American currency from importers, capital outflows too weighed on the domestic currency.
The dollar strengthened against some currencies overseas as investors bid up safe haven assets amid tensions over global trade and strains in emerging market currencies.
A sharp rally in global crude prices further dampened the overall trading sentiment.
Benchmark Brent crude oil was trading at USD 78.05 a barrel.
Yesterday, the rupee had lost 21 paise, to close at an all-time low of 71.21 against the US dollar.
Meanwhile, the BSE Sensex fell by 7.60 points, or 0.01 per cent, to 38,304.92 points in early trade.
Foreign institutional investors (FIIs) sold shares worth a net of Rs 21.13 crore on Monday, as per provisional data.
Flashback:
Rupee at 60. It is mayhem. Close to an economic crisis. But well, the government is silent.
— Chetan Bhagat (@chetan_bhagat) June 20, 2013
It is refreshing to know that the rupee will get stronger at Rs.40/- per dollar if Modi comes to power http://t.co/OacZDXesGy
— Gurudev Sri Sri Ravi Shankar (@Gurudev) March 20, 2014
UPA Government and the Rupee seem to be in a competition with each other on who will tumble down more. http://t.co/Rl8RMMJ9kZ
— Narendra Modi (@narendramodi) July 24, 2013
In 2013, even Narendra Modi had said the fall in the value of rupee is not because of its ‘size’ but because of people sitting in Delhi who are busy in corruption.
Rupee is not losing strength because its size has changed.It is because those sitting in Delhi are busy in corruption: Modi ji
— narendramodi_in (@narendramodi_in) July 14, 2013
A Twitter user quoted Sushma Swaraj’s tweet in 2013, “The Rupee has lost its value. The Prime Minister has lost his grace.”
To Quote Sushma Swaraj: The Rupee has lost its value. The Prime Minister has lost his grace. pic.twitter.com/J3IQtOBZnQ
— Joy (@Joydas) May 7, 2015
Also Read: Modi Hits New Record: Petrol At Rs 79.15/litre, Diesel At Rs 71.15/litre
With inputs from PTI.