Besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows mainly weighed on the domestic currency.
(Photo: Getty Images)
The Indian rupee on Wednesday breached the 73 mark against the United States dollar for the first time ever on strong demand for the American currency from importers amid rising global oil prices and unabated capital outflows.
At the Interbank Foreign Exchange (forex) market, the domestic currency dropped 49 paise against the US dollar in the early trade.
After opening at new-record low of 73.26, the Indian currency further dropped to 73.41 per dollar. On Monday, INR had closed at 72.91 per dollar.
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Foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,842 crore Monday, provisional data showed.
Investors remained concerned over sustained foreign capital outflows and soaring crude oil prices that crossed the USD 85 per barrel.
The rupee Monday tumbled 43 paise to end at a two-week low of 72.91 against the US dollar on steady capital outflows.
Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows mainly weighed on the domestic currency.
Forex market remained closed Tuesday on account of Gandhi Jayanti.
Meanwhile, the BSE benchmark Sensex dropped by 137.62 points, or 0.38 per cent, to 36,388.52 in opening trade Wednesday.
(With PTI inputs)
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