The rupee extended its losing streak for an eighth consecutive session on Tuesday, tumbling 50 paise to close at a record low of 96.70 against the US dollar amid elevated crude oil prices, persistent foreign fund outflows and a stronger dollar driven by global risk aversion, PTI reported.
The rupee, which has emerged as Asia's worst-performing currency, has declined by Rs 2.48 or 2.64 per cent over the last eight trading sessions from its closing level of 94.22 on May 7.
Forex traders attributed the sharp depreciation in the domestic currency to rising crude prices and global supply-chain disruptions linked to the closure of the Strait of Hormuz.
At the interbank foreign exchange market, the rupee opened at 96.38 against the US dollar and touched an intraday high of 96.27 during the session.
The currency eventually settled at its historic closing low of 96.70 against the dollar, down 50 paise from Monday's close of 96.20.
Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said a stronger dollar and rising US treasury yields amid continuing geopolitical tensions and foreign institutional investor outflows pressured the rupee.
"However, any intervention by the RBI and certain restrictions on the import of gold and silver may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 96 to 96.60," Choudhary said, PTI quoted.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.05 per cent higher at 99.24 amid continuing Iran-related tensions.
Brent crude, the global oil benchmark, was trading 1.92 per cent lower at $109.95 per barrel in futures trade.
Traders said emerging market economies, including India, remain under pressure from higher crude prices, as elevated oil rates accelerate dollar outflows and intensify foreign portfolio investor withdrawals.
Meanwhile, US President Donald Trump said he had halted fresh strikes on Iran following requests from Qatar, Saudi Arabia and the UAE, while indicating that discussions with Tehran were progressing.
On the domestic equity front, the Sensex declined 114.19 points to close at 75,200.85, while the Nifty fell 31.95 points to settle at 23,618.
Foreign Institutional Investors (FIIs) turned net sellers after three sessions of buying and sold equities worth Rs 2,457.49 crore on Tuesday, according to exchange data.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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