The rupee on Thursday weakened by 24 paise to hit another low of 74.45 against the US dollar on strong demand for the American currency from importers amid unabated foreign fund outflows and a sharp losses in the domestic equity market.
Against the UAE dirham, the rupee was trading at 20.26 at 7:50am (UAE time), according to�XE.com.
At the Interbank Foreign Exchange (forex) market, the domestic currency opened weak at 74.37 and slipped further to quote at an all-time low of 74.45, depreciating 24 paise against the US dollar in the early trade.
Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows weighed on the domestic currency.
On Wednesday, the rupee snapped its six-session losing streak to end 18 paise higher at 74.21 against the US dollar after the American currency weakened overseas.
Foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,096 crore Wednesday, provisional data showed.
Investors remained concerned over sustained foreign capital outflows.
Key Indian equity market indices open in red
The key Indian equity market indices on Thursday opened lower following a muted trend in global markets even as the Indian rupee slipped to a new record low of 74.46 against the greenback.
The Sensitive Index (Sensex) of the BSE, which had closed at 34,760.89 points on Wednesday, opened lower at 34,063.82 points.
Minutes into trading, it was quoting at 33,891.52 points, down by 869.37 points, or 2.50 per cent.
At the National Stock Exchange (NSE), the broader 50-scrip Nifty, which had closed at 10,460.10 points on Wednesday, was quoting at 10,155.65 points, down by 304.45 points or 2.91 per cent.
Attractive valuations, along with a stable rupee and expectations of a healthy second quarter earning results, had pushed the key domestic equity indices higher on Wednesday.
Healthy buying in banking, capital goods and automobile stocks, coupled with the hopes of revival of the non-banking financial companies (NBFCs) enhanced investors' risk-taking appetite.
The Sensex was up by 461.42 points or 1.35 per cent at the Wednesday's closing. In the day's trade, the barometer 30-scrip sensitive index had touched a high of 34,858.35 points and a low of 34,346.50 points. The Nifty50, was up by 159.05 points or 1.54 per cent.
On Thursday, Asian indices were showing a negative trend. Japan's Nikkei 225 was quoting in red, down by 4.37 per cent while Hang Seng was down by 3.95 per cent, South Korea's Kospi was also down by 3.63 per cent. China's Shanghai Composite index was trading in red, down by 4.74 per cent.
Overnight, Nasdaq closed in red, down by 4.26 per cent while FTSE 100 was also down by 1.29 per cent at the closing on Wednesday.
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