Rupee depreciates 6 paise to hit record low of 83.06 against US dollar

At the interbank foreign exchange, the domestic unit opened weak at 83.05 against the dollar, then slipped further to quote 83.06, a fall of 6 paise over its previous close.

The rupee depreciated 6 paise to a record low of 83.06 against the US dollar in opening trade on Thursday due to a stronger greenback overseas and unrelenting foreign fund outflows. Besides, a sell-off in domestic equities and risk-averse sentiments weighed on the local unit, forex traders said.

In the previous session on Wednesday, the rupee plunged 60 paise to end at 83 against the dollar.

At the interbank foreign exchange, the domestic unit opened weak at 83.05 against the dollar, then slipped further to quote 83.06, a fall of 6 paise over its previous close. The local currency also hit a high of 83.07 in early deals.

In the previous session on Wednesday, the rupee plunged 60 paise to end at 83 against the dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 113.06.

Experts have expressed concerns over U.S. Federal Reserve's expected rate hikes, rising oil prices and widening trade deficit further weighing on the currency.

Brent crude futures, the global oil benchmark, slipped 0.17 per cent to USD 92.25 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 140.09 points or 0.24 per cent lower at 58,967.10. Similarly, the broader NSE Nifty fell 43.95 points or 0.25 per cent to 17,468.30.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth ₹453.91 crore on Wednesday, according to exchange data.