New Delhi— The rupee fell to an all-time low on Tuesday, crossing the 91-per-dollar mark against the US dollar for the first time. The decline extended the currency’s losing streak as persistent foreign fund outflows and trade-related uncertainties continued to weigh on sentiment, pushing the rupee to successive record lows.
Over the past 10 trading sessions, the rupee has weakened from the 90-per-dollar level to 91. In the last five sessions alone, it has slipped by nearly 1 per cent against the greenback. At 11:38 am, the rupee was trading at 91.075 to the dollar.
Earlier in the day, the currency touched a record intraday low of 90.83 against the dollar. After opening, it slipped 0.1 per cent to 90.79. The pressure followed heavy selling in the previous session, when the rupee fell to an intraday low of 90.80 before settling at a record closing low of 90.78.
Market participants said sustained selling by foreign institutional investors (FIIs) has created a vicious cycle for the rupee. Typically, when the currency weakens sharply, the Reserve Bank of India intervenes by selling dollars to curb excessive depreciation.
The latest slide comes after the rupee had already fallen 17 paise on Friday to close at 90.49, which was then its lowest-ever level against the US dollar. Earlier on Monday, the domestic currency had opened at 90.53 in the interbank foreign exchange market.
