Rupee nosedives to a record low of 79.03/$

Mumbai: Falling for the fourth session in a row, the rupee slid by 18 paise to close at a record low of 79.03 against the US dollar on Wednesday, weighed down by a rise in crude oil prices, a strong dollar overseas and persistent foreign capital outflows.

The rupee depreciated following risk-averse sentiments and weaker regional currencies, Dilip Parmar, Research Analyst, HDFC Securities said, adding "high demand and tighter dollar liquidity following quarter-end rebalancing weighed on a local unit(rupee). The short-term outlook for spot USD/INR remains bullish and one can see a level of 79.10 in the coming days, while on the lower side support has been shifted to 78.38."

At the interbank foreign exchange market, the rupee opened lower at 78.86 against the greenback and finally settled at 79.03, down 18 paise over its previous close. During the session, the rupee touched an all-time low of 79.05 against the American currency. On Tuesday, the rupee plunged by 48 paise to close at the record low of 78.85 against the US dollar. The domestic unit has lost 1.97 per cent so far this month and has eroded a staggering 6.39 per cent since the start of this year. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.13 per cent higher at 104.64.

The sentiment remains feeble for the rupee amid foreign fund outflows and fear of dollar shortages following quantitative tightening from the US Federal Reserve. Global oil benchmark Brent crude futures advanced 0.34 per cent to $118.38 per barrel. On the domestic equity market front, the 30-share BSE Sensex ended 150.48 points or 0.28 per cent lower at 53,026.97, while the broader NSE Nifty fell 51.10 points or 0.32 per cent to 15,799.10. Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 1,244.44 crore, as per stock exchange data.